Botswana consumers are demonstrating resilience as households navigate rising financial pressures and increasing demands on their disposable income. While many consumers are adjusting spending habits, seeking additional sources of income and taking a more cautious approach to borrowing, they remain optimistic about their long-term financial prospects.

These are among the findings of TransUnion’s Q3 2026 Consumer Pulse Survey¹, which found that while financial pressures have increased over the past year, consumers continued to adapt and remain focused on achieving their long-term financial goals.

Despite increased financial pressure, more than seven in ten consumers (71%) remained optimistic that their household income would increase during the next 12 months. This optimism reflects consumers’ determination to improve their financial circumstances while actively adapting to current economic conditions.

Households Prioritise Essential Spending as Financial Pressures Increase

The study found consumers were experiencing a more challenging income environment than a year prior. The proportion of respondents who reported their household income declined during the previous three months increased from 30% in 2025 to 39% in 2026, while the proportion reporting income growth decreased from 33% to 26%.

At the same time, the percentage of consumers expecting difficulty paying at least one current bill or loan increased from 34% in 2025 to 39% in 2026.

Among those anticipating difficulty meeting financial obligations, the top ways they said they’d pay their current bills and loans were:

• Making partial payments (43%)
• Taking on temporary or gig work to supplement their income (38%)
• Using savings or borrowing from friends or family (both 26%)

Consumers were also becoming increasingly selective about non-essential expenses. Nearly three-quarters (73%) reported cutting back on discretionary spending like dining out, travel and entertainment in the past three months, up 19 percentage points compared to the same quarter in 2025. The proportion of consumers who said they reduced digital services like wireless phones, cable TV or Internet increased from 30% to 39%, while those cancelling subscriptions or memberships rose seven percentage points YoY to 40%.

“What stands out in this quarter’s findings is the determination of Botswana’s consumers to remain financially resilient,” said Kabelo Ramaselwana, CEO of TransUnion Botswana. “Households are making deliberate decisions about spending, looking for opportunities to supplement their income and focusing on maintaining financial stability despite current challenges.”

Access to Credit Remains Relevant, Although Consumers’ Plans Were More Selective

Access to credit continues to play an important role in helping consumers achieve their financial goals. Nearly all respondents (96%) said access to credit and lending products is important to achieve their financial goals, unchanged from 2025. However, confidence in credit accessibility has weakened. The proportion of consumers who believe they have sufficient access to credit and lending products declined from 41% to 36%, while those who said they didn’t have sufficient access increased from 37% to 45%.

Reflecting a more cautious mindset, intentions to apply for new credit or refinance existing credit fell 15 percentage points from the same quarter in 2025 to 25% in 2026. Among respondents who said they plan to apply for new or refinance existing credit, those who said they’ll apply for a new personal loan declined 16 percentage points YoY to 27%, while those planning to apply for a mortgage or home loan fell six percentage points from 30% to 24%.

“The findings suggested that consumers have adopted a more deliberate approach to borrowing,” said Ramaselwana. “While the importance of credit remains high, affordability considerations and confidence in access to credit are increasingly influencing how and when consumers choose to take on new debt.”

More Fraud Victims Despite Fewer Reported Scam Attempts

While fewer consumers reported being targeted by digital fraud compared with last year, fraud remains a significant concern. The proportion of consumers who reported being targeted by email, online, phone call or text message fraud declined seven percentage points YoY to 68% in 2026. However, the proportion reporting they had become victims of digital fraud increased from 6% to 8%.

Among consumers who reported being targeted:

• Phishing attempts increased from 38% to 47%
• Vishing (voice-phishing) attempts increased from 39% to 46%

The findings suggest that fraudsters continue to evolve their tactics across both online and voice channels, including mobile messaging, phone calls and impersonation scams designed to obtain personal and financial information.

Encouragingly, consumers were becoming more proactive in protecting themselves after saying they were notified in the last three months that they were victimised in a data breach. Changing passwords remained the most common response among data breach victims, with 57% doing so, while checking the account for unauthorised activity was the strategy of 52% of consumers – both responses broadly the same as last year. Notably, the proportion of consumers checking their credit reports for signs of fraudulent activity increased significantly from 14% to 23%.

"Botswana's consumers are navigating the current economic environment with resilience and adaptability,” said Ramaselwana. “While households continue to face economic pressures, many are taking proactive steps to manage their finances, strengthen their credit positions and protect themselves against fraud. Consumers who remain informed about their financial health and make thoughtful decisions about credit and spending will be best positioned to benefit from future opportunities as the economy evolves.”

Ends.

¹ TransUnion’s Q2 2026 Consumer Pulse Survey of 183 adults in Botswana was conducted 20 July and 7 August 2026 by TransUnion in partnership with third-party research provider, Dynata.

According to the new TransUnion® (NYSE: TRU) H2 2025 Update to the Top Fraud Trends Report, Botswana recorded the highest rate of suspected digital fraud^[1] in the consumer lifecycle at account creation. In the first half of 2025, 2.6% of account creation attempts by consumers in the country were suspected of digital fraud. This is in alignment with account creation fraud being the highest in the consumer lifecycle globally where 8.3% of those types of transaction attempts were suspected of digital fraud in H1 2025.

The report, which draws on proprietary data from TransUnion’s global intelligence network from billions of transactions from over 40,000 websites and apps and a consumer survey across 18 countries, reveals that fraud is growing in certain areas.

“In Botswana, the complexity of digital fraud attacks are accelerating as fraudsters leverage AI, impersonation tactics and social engineering to exploit gaps in verification and awareness,” said Amritha Reddy, senior director of fraud product management TransUnion Africa. “Our global business survey found that financial losses from fraud are growing, indicating that although some defence mechanisms are working fraudsters are shifting tactics, scaling up or moving into less defended sectors.”

According to analysis of TransUnion’s customers in its global intelligence network, digital account takeover volume worldwide grew 21% year-over-year (YoY) from H1 2024 to H1 2025, signalling a rapid escalation. The volume of digital account takeovers surged 141% from H1 2021 to H1 2025, underscoring a persistent rise of this fraud type over time and reflecting the increasing sophistication of fraudsters who exploit stolen credentials and bypass authentication systems.

"As account takeover fraud surges, businesses can no longer afford solely reactive defences,” said Reddy. “The growing sophistication of fraudsters demands a proactive investment in layered security and identity intelligence. In today’s threat landscape, protecting customer accounts is not just a priority, it’s a business imperative."

Highest Rate of Suspected Digital Fraud in Video Gaming

Among industries analysed globally, the video gaming sector recorded the highest percentage of suspected digital fraud attempts in the first half of 2025, reaching 13.5%. This represents a significant 28% rate increase compared to the same period in 2024, underscoring the growing vulnerability of this sector to fraudulent activity.

For transactions where the consumer was in Botswana, the rate of suspected digital fraud attempts in H1 2025 was the highest in the gaming industry, which includes online sports betting and poker, at 1.8%.

Chart 2: Suspected Digital Fraud Attempts in Botswana, by Sector

^{Source: TransUnion global intelligence network}

“As the risk from consumer scams threatens identity integrity, organisations should rely on a mixture of data, risk signals, technology and tools to prevent fraud,” said Reddy. “The report highlights that business leaders rank^[2] identity verification, device reputation and behavioural biometrics as the leading three fraud prevention technologies.”

“Businesses and financial institutions should also invest in sustained education and awareness campaigns to mitigate against schemes like account takeovers. Preventing fraud must by necessity be a multi-pronged strategy, if businesses and consumers are to stay ahead of fraudsters whose strategies continue to evolve too,” she said. “By harnessing advanced technologies, fostering cross-sector collaboration, and prioritising consumer trust, Botswana can chart a path toward a secure and inclusive digital future.”

Consumer-Reported Exposure to Fraud High Amid Gaps in Awareness and Prevention

Globally, consumers continue to face a wide range of scams, with tactics often tailored to regional behaviours and vulnerabilities. TransUnion’s survey found that 48% of consumers surveyed globally reported being targeted by email, online, phone call or text messaging fraud from February to May 2025, with 74% of Batswana saying the same thing. Globally, 52% were unaware that they were targeted, as were 26% of Batswana, indicating potential fraud under-recognition and a gap in fraud awareness.

Consumers in five of the six African countries surveyed reported money or gift card scams as the most experienced fraud type. In Botswana, money or gift card scams was the most common fraud type – reported by 43% of those who said they were targeted with fraud from February to May 2025. Among those Batswana who said they were targeted, the next most frequently reported scams were smishing (39%), vishing (39%), and phishing (38%), with these three designed to deceive individuals into giving up their valuable personal or financial information.

Botswana Had the Lowest Percentage of Respondents in Africa Indicating They Fell Victim to Fraud from February to May 2025

   ^{Source: TransUnion consumer survey}

“As Botswana’s digital economy accelerates, so do the risks. Fraudsters are exploiting gaps in awareness, infrastructure and security. The country has laid a strong digital foundation. Now is the time to strengthen it, and a coordinated response is essential. By leveraging data intelligence, AI-driven fraud prevention, cross-sector collaboration and public education, we can outpace emerging threats and build a digital ecosystem rooted in trust,” said Reddy. “A safer digital Botswana is achievable when trust becomes a shared responsibility. As scammers continue to evolve their tactics to enrich themselves, it’s more important than ever for consumers to regularly review their credit reports to ensure all listed information is accurate.”

TransUnion came to its conclusions about digital fraud based on intelligence from its array of TransUnion fraud prevention solutions. To learn more about how TransUnion fraud prevention solutions can help businesses avoid fraud and prevent fraud losses, click here.

Specific country and regional data in the report includes Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, Spain, South Africa, the United Kingdom, the United States and Zambia. Download the TransUnion H2 2025 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

^{[1] Suspected digital fraud attempts reflect those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation.}

^{[2] As found by TransUnion’s online business survey conducted from 29 May to 6 June 2025 in partnership with third-party research provider, Dynata. Findings were included in TransUnion’s H2 2025 Update to the Top Fraud Trends Report}

Information and insights company TransUnion Botswana has published its Q2 2025 Consumer Pulse Study* which showed that only one third (33%) of Batswana respondents reported a growth in their income in the last three months, while 49% said their finances were worse than planned. One quarter (25%) were affected by job losses – nine percentage points more than said the same thing one year ago.

Despite this, 77% remained optimistic about their future finances, with Gen Z consumers (aged 18-28) being the most hopeful group with 83% feeling optimistic about their future. Nearly nine in 10 (87%) of this cohort expected their incomes to increase in the next year – 10 percentage points more than those who said the same a year ago.

Consumers’ most significant financial concerns are inflation, job security and housing prices. Nearly eight in 10 (78%) put inflation as one of their top three financial concerns followed by job losses and housing prices (rent or mortgage) each at 55%.

Likely in response to these concerns, 53% of consumers indicated they cut back on discretionary spending (dining out, travel, entertainment) in the past three months, 34% cancelled subscriptions or memberships and 30% cancelled or reduced digital services (e.g., wireless, cable TV, internet).

Looking forward to the next three months, 57% of surveyed consumers expected to reduce their discretionary spending – significantly more than the proportion of respondents who expected discretionary spending to remain the same (17%) or increase (22%). At the same time, 42% anticipated reducing spending on large purchases.

“These trends suggest that consumers in Botswana are scaling back their short-term spending to prioritise long-term financial goals and essential expenses,” said Kabelo Ramaselwana, CEO of TransUnion Botswana. “Trimming non-essential costs is a smart strategy to build and maintain financial stability and resilience.”

Taking intentional steps towards financial sustainability will help the 34% of Batswana who are expecting to miss at least one bill or loan payment in the next quarter. Of those facing this challenge, 42% plan to explore additional job opportunities or take on gig work to boost their available funds, 38% plan to make partial payments, and 25% intend to use their savings to address the shortfall.  

Gen Z and Millennials Lead the Charge in Credit Applications Amid Access Concerns

During the quarter surveyed, 95% of respondents considered access to credit important, yet only 41% felt they had sufficient access. This shows a gap between the importance of credit access and consumer confidence, pointing to a need for more inclusive lending. Looking ahead, 39% of respondents planned to apply for new or refinanced credit within the next year. Among these, 42% intended to apply for a new personal loan (six percentage points higher than Q2 2024), while 30% planned to seek a new home loan. Additionally, 17% expressed interest in applying for a new car loan or lease, or student loan.

Among those intending to apply for new credit or to refinance existing credit, most were Gen Z consumers (43%) followed by 37% of Millennials (aged 29-44) and 35% of Gen X (aged 45-60).

“Gen Z and Millennial consumers are entering the workplace and embracing the lifestyle elements that come with establishing a career and a family, while also taking a strategic approach to credit - carefully managing and monitoring their credit profile to enable confident transactions with financial institutions to empower themselves to achieve great things,” says Ramaselwana.

Financial Literacy Gaps Persist, Opportunities for Alternative Data Identified  

In Q2 2025, many surveyed consumers in Botswana recognised the importance of credit monitoring: 37% of respondents considered it extremely important and 38% rated it as very important. Despite this awareness, only 48% of respondents reported checking their credit at least monthly followed by 13% who did so quarterly. Alarmingly, 27% said they don’t monitor their credit, though this is a five-percentage-point improvement from the previous year. This gap highlights the need for improved financial literacy and easier access to credit tools. Among those who did monitor their credit, 45% focused on report accuracy, 38% aimed to prevent fraud and 37% wanted to improve their credit scores.

Over half of respondents (51%) believed their credit profiles would improve if businesses used information not on the standard credit report, such as rental payments, gym membership payments and other alternative data. Medium-income consumers (N$300,001 to N$800,000 per annum) were the most optimistic as 55% believed their credit profiles would improve if alternative data were considered beyond traditional credit reports.

^{* TransUnion’s Consumer Pulse Survey of 251 adults was conducted 5–25 May 2025 by TransUnion in partnership with third-party research provider Dynata. Adults 18 years and older residing in Botswana were surveyed using an online research panel method across a combination of desktop, mobile and tablet devices.}

Globally, TransUnion found communities experienced the highest rate of suspected digital fraud attempts in 2024. Nearly 12% of all attempted transactions within communities were suspected to be digital fraud last year. This was closely followed by video gaming (11%), with gaming at 8% and retail (8%) rounding out the top four.

The logistics industry, which has seen growth in shipping fraud (often perpetrated by organised crime rings), saw the greatest suspected digital fraud volume growth globally in 2024, up more than 100% over 2023. That being said, the fraud rate remains at a relatively modest at 3%. Gaming also saw a significant year-over-year (YoY) volume change, up 20%. Telecommunications (-79%), insurance (-29%) and video gaming (-23%) saw the greatest decreases in suspected digital fraud volume YoY.

“Digital fraud on community platforms is by no means a new phenomenon. In 2024, it appears that fraudsters targeted these areas with a renewed vigour,” said Amritha Reddy, senior director of fraud solutions at TransUnion Africa. “Cybercriminals take advantage of the trust inherent on community-based platforms, and target members with a wide range of scammer solicitations, the most reported type of digital fraud in communities.

“It is encouraging to see that attempts at digital fraud have decreased across all but two of the surveyed industries in Botswana,” Reddy says. “Organisations that draw on identity, device and behavioural insights to help them interact with legitimate consumers while mitigating fraud risk are more likely to protect themselves and their customers from the scourge of digital fraud.”

Highest Digital Fraud Rates Across Leading Industries in Botswana

Source: TransUnion TruValidate™                                                                     

*Insurance, government, video gaming, logistics, travel and leisure and communications were not included due to low transaction volumes in these sectors

Fraud Comes with a Heavy Cost to Consumers

Consumers faced significant losses due to fraud. Among consumers TransUnion surveyed in 18 countries and regions in November and December 2024, 29% said they lost money due to email, online, phone call or text messaging fraud in the last year. The survey determined that the median amount those consumers said they lost due to fraud in the past year was BWP23,957^[2].

TransUnion came to its conclusions about digital fraud based on intelligence from TransUnion TruValidate.

Specific country and regional data in the report includes Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya Mexico, Namibia the Philippines, Puerto Rico, Rwanda Spain, South Africa, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2025 Update to the State of Omnichannel Fraud Report for more information and insights about the global fraud trends.

^{[1] The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represents every country worldwide and not just the select countries and regions.}

^{[2] Based on the exchange rate on 23 April 2025}

In the first half (H1) of 2024, 3.0% of all attempted digital transactions where the consumer was located in Botswana were identified as suspected Digital Fraud in a recent TransUnion® (NYSE:TRU) analysis. Botswana had the fifth lowest rate of suspected Digital Fraud in the first half of 2024 out of the 19 countries and regions for which TransUnion provided regional breakdowns.

TransUnion also determined that gaming, financial services and retail were the industries that had the highest suspected Digital Fraud rate for transactions where the consumer was in Botswana during the analysis period.

Some of these findings are in the newly released TransUnion H2 2024 Update to the State of Omnichannel Fraud Report, which explores fraud trends in the first half (Jan. 1-June 30) of this year. It found that some industries were particularly targeted, even though Digital Fraud affects many industries in Botswana.

This is at a time when 77% of Botswana consumers said in Q2 2024 that they were targeted with online, email, phone call or text messaging fraud attempts in the last three months, and of those consumers only 5% reported falling victim^[1].

“Despite the good-faith efforts that are being made by global organisations to identify and prevent fraud to date, fraudsters continue to evolve. In that sense, businesses should ensure that they are taking advantage of fraud prevention technologies such as identity verification, IP intelligence, device reputation and synthetic identity detection as critical components of their fraud prevention programs,” said Amritha Reddy, senior director of fraud solutions at TransUnion Africa.

Table 1: Industries with the Highest Rate of Suspected Digital Fraud Attempts Where the Consumer was in Botswana in H1 2024

Source: TransUnion TruValidate™

The communities industry experienced the largest percentage (11.5%) of suspected Digital Fraud globally in H1 2024, according to data in TransUnion TruValidate. Globally, TransUnion’s communities customers reported profile misrepresentation (where a user posts inaccurate information in a profile and/or uses bogus profile photos) as the most frequent type of Digital Fraud they witnessed in H1 2024. Communities was the industry with the highest suspected Digital Fraud rate in seven of the 19 countries and regions for which TransUnion provided breakdowns in H1 2024.

New Account Fraud Risk Threatens Digital Experiences

Digital fraud can occur at different steps in a customer’s transaction process, and more than two-thirds of business leaders surveyed by TransUnion indicated that at least 25% of their organisation’s new account openings are done online, with more than a third saying that it was 51% or more^[2]. For transactions where the consumer was in Botswana, 3.7% of digital account opening attempts were suspected of Digital Fraud, with 3.1% of digital account login attempts also being suspected of Digital Fraud in H1 2024.

“Digital Fraud waxes and wanes, but the trends in cybercrime and consumer scams are clear,” said Kabelo Ramaselwana, CEO TransUnion Botswana. “Now and in the future, organisations face more sophisticated cybercriminals weaponizing identity data at scale to perpetuate first- and third-party fraud schemes. Fraud prevention is a necessary cost that needs to be as efficient as possible, using better data and risk signals, advanced analytics, and integrated technology, without increasing lost business and additional expense from false positives.”

TransUnion also determined synthetic identity fraud (the use of personally identifiable information or PII to fabricate a person or entity in order to commit a dishonest act for personal or financial gain) was the fastest growing Digital Fraud type volume-wise globally reported to TransUnion by its customers from H2 2023 to H1 2024, increasing 153%. Electronic fund transfers (also known as ACH/debit payments) fraud saw the highest YoY volume growth worldwide, up 113% from H1 2023 to H1 2024. However, promotion abuse (consumers or fraudsters taking advantage of marketing offers to receive unintended financial incentives) was the most common Digital Fraud type globally in H1 2024, accounting for 3.6% of all Digital Fraud reported to TransUnion by its customers.

About the Analysis

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate. The rate or percentage of suspected Digital Fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed.

Download the TransUnion H2 2024 Update to the State of Omnichannel Fraud Report to learn more. Specific country and regional data in the report include Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, South Africa, the Philippines, Puerto Rico, Rwanda, Spain, the United Kingdom, United States, and Zambia.

^[1] TransUnion survey of 500 Botswana consumers from May 1-20, 2024

^[2] TransUnion business survey of 801 business leaders from May 14–29, 2024

According to information and insights company TransUnion’s latest Consumer Pulse Study, Botswana’s economic landscape is showing positive shifts in the second quarter of 2024.

Household incomes improved, with 41% of consumers reporting income increases over the past three months, a notable rise of four percentage points from the previous year, and a figure that is almost double the number of households that saw a decline in income (21%). This improvement aligns with 25% of households starting new businesses to increase their income, as well as Botswana’s formal sector earnings, which saw a 13.1% increase by the end of last year, compared to 8% wage growth in 2022.

Further compounding the positive macroeconomic climate, the inflation rate has decelerated significantly, to 3.4% (January – April) in 2024, down from 5.1% in 2023 and a peak of 12.2% in 2022. While inflation is expected to average out at 4% for the year, this significant decrease is contributing to a feeling of improved financial wellbeing and buoyancy. Optimism about future income has risen, with 77% expecting an increase over the coming 12 months (up three percentage points compared to 2023).

Kabelo Ramaselwana, Country Manager at TransUnion Botswana, notes that the slowdown in inflation supports disposable income growth and these economic improvements and income increases are being managed responsibly by Botswanan consumers. “However, it is possible that the high unemployment rate combined with income inequality are putting the brakes on and could further limit household spending growth in the near-term.”

Ability to pay bills is vastly improved

According to the study, 74% of consumers expect to be able to pay their bills in full, with the proportion of households struggling to make payments down by eight percentage points to 26% compared to the same time last year. Of this struggling segment, 43% plan to make at least partial payments. A further 21% plan to dip into their savings to service their debt responsibilities and, in an increase of seven percentage points from 2023, 11% plan to take out a personal loan to cover their bills.

As households gain traction towards financial stability, 25% are focusing on paying down their debt faster and 29% are building financial resilience with increased contributions to emergency funds.

Consumers are also cutting back on non-essential expenditure, with 56% of respondents reducing their discretionary spending over the past three months, with 28% cancelling subscriptions and memberships. Looking ahead, consumers plan to focus on paying bills and loans (46%), boost retirement funds and investing (45%), and pay for medical care and services (42%).

Credit and financial inclusion

Access to credit remains crucial for Botswana’s consumers, with 96% considering it important. Perceived access to credit improved markedly by 10 percentage points from last year as 45% felt adequately served, notably among Millennials (27–42 years old) at 48% and Gen X (43–58 years old) at 49%. Looking ahead, 33% of consumers plan to apply for new or refinance existing credit, with Millennials (34%) showing the highest demand.

Among those planning to apply for new or refinance existing credit within the next year, 37% indicated a demand for new personal loans, reflecting a notable nine percentage-point increase from the prior year. Gen Zs (48%) and Millennials (35%) were the most interested in acquiring personal loans while, overall, 34% were considering new home loans, a significant 12 percentage-point rise from the previous year.

However, 50% of potential borrowers abandoned their plans to take out new credit, with 31% citing the high cost of credit as the reason for this decision.

Monitoring credit reports

Monitoring their credit status is viewed as extremely, very or moderately important by 85% of consumers, yet only 44% review their credit reports monthly. A growing number of consumers (55%, up from 46% last year) believe that incorporating alternative data, such as rental payments would improve their credit scores.

Fraud and consumer education

Digital fraud remains a concern, with 72% (up nine percentage points) of respondents having been targeted by fraud schemes, although only 5% fell victim, a decrease from 8% the previous year. Vishing (47%), phishing (40%), and smishing (38%) are the most prevalent scams. Surprisingly, 23% of consumers reported being unaware of any targeted fraud schemes. Nearly all (96% in Q2 2024, up from 94% the previous year) consumers expressed concerns about sharing personal information. Their main concerns included fear of invasion of privacy (84%), worries about identity theft (77%), and receiving unsolicited marketing communications (36%).

“These findings highlight the importance of robust data protection measures and privacy policies. Addressing these concerns is crucial for businesses to build consumer trust and ensure responsible data handling practices. At the same time, consumers should check their credit reports regularly to flag any possible fraud that affects their credit scores, as early as possible,” says Ramaselwana.

Consumers can learn more about their credit profile from TransUnion here.

TransUnion found across industries in 2023, 3.0% of all transactions where the consumer was in Botswana were flagged as being suspected Digital Fraud – an 85% YoY increase.

The TransUnion report revealed that nearly one in seven (13.5%) newly created accounts are suspected to be created via Digital Fraud globally in 2023, largely driven by bad actors using fabricated or stolen identities. This may indicate a shift in the tactics deployed by fraudsters hoping to engage earlier in the transactional process.

Examples of the types of transactions that take place during the account creation process include account signup, registration and loan origination. Among the industries globally that saw the highest percentage of digital account creation transactions suspected to be Digital Fraud globally in 2023 were retail (44.7%), travel and leisure (36.0%), and video gaming (31.5%).

“This early-phase new account Digital Fraud may represent a paradigm shift of sorts among fraudsters globally,” said Kabelo Ramaselwana, chief executive officer at TransUnion Botswana. “In lieu of using traditional tactics to gain access to and ultimately compromise existing accounts, they are increasingly choosing to create new accounts that they can control themselves. These fraudsters leverage synthetic identities assembled in large part through the use of credentials gathered as a result of one or multiple data breaches.”

In contrast, for transactions where the consumer was in Botswana, the highest percentage of suspected Digital Fraud in the online customer journey occurred at account login, at 13.0%, varying widely by industry.

Retail Saw the Highest Suspected Digital Fraud Rate in 2023 Globally, While Online Gaming Continues to See the Highest Rate in Botswana*

Source: TransUnion TruValidate™

The study found that 5% of all global digital transactions were suspected to be Digital Fraud in 2023, with the volume of risky transactions up 14% YoY and 105% from 2019 to 2023. This growth continues to outpace the growth in digital transactions, which rose 90% from 2019 to 2023.

Globally, retail surpassed gaming as the industry seeing the highest rate of suspected Digital Fraud in 2023 at 8.7%, up 21% YoY. In addition, the telecommunications industry saw a 111% YoY increase in the suspected Digital Fraud rate, up to 4.5%.

“In recent years, the global retail industry has consistently been among those with the highest suspected fraud attempt rates. However, in 2023 it climbed to the top of the list,” said Ramaselwana. “As a result of credentials stolen in data breaches, often in industries other than retail, it has become increasingly easy for fraudsters to perpetuate attacks that leave retailers vulnerable to account takeover.”

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate. The rate or percentage of suspected Digital Fraud attempts reflect those that TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation —compared to all transactions assessed.

 The report’s findings are based on proprietary insights from TransUnion’s global intelligence network, and includes data from Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States, and Zambia.

*Some industries were excluded from the Botswana study due to a lack of statistically significant data.

TransUnion’s Q2 2023 Consumer Pulse Study^[2] shows that nearly a third (34%, up four percentage points from Q3 2022) of consumers expect to be unable to pay at least one of their current bills and loans in full. Of those consumers, almost a quarter (24%) plan to borrow from a friend or family member to help pay some of their current bills and loans. Overall, nearly one in four (38%) anticipate increased spending on bills and loans, over half (53%) expect to reduce their discretionary spending (dining out, travel and entertainment) and nearly a third (32%) say they’ll decrease large purchases such as appliances and vehicles in the next three months.

“Macroeconomic pressures remain top-of-mind for many consumers, and this cuts across all sectors of society. What they used to buy for 10 pula now costs 15. They’re worried about inflation, rising interest rates, affordability of basic needs (housing, transport and food prices), and this is affecting how they are managing their household finances,” said Kabelo Ramaselwana, chief executive officer of TransUnion Botswana.

Despite decreased future spending, there is a welcomed sign of incomes that appear to be growing. Nearly four in 10 (37%, 11 percentage points higher than Q3 2022) Botswana consumers report an income increase over the last three months. A similar number (38%) said their income level stayed the same and one in four (25%) said their income decreased. Encouragingly, more than seven in 10 (75%) expect their incomes to increase over the next 12 months.

While steady or increasing income levels may help mitigate the effects of inflation and increased debt levels, concerns over cost-of-living and interest rate increases continue to impact spending behaviour for many consumers. Shifts in household spending included cutting back on discretionary spending (63%, up 25 percentage points from Q3 2022), cancelling subscriptions or memberships (35%) and reducing digital services expenses (27%, up 8 percentage points from Q3 2022) in the last three months.

“Overall, the study suggests that consumers are taking a prudent approach in managing their finances in the face of economic uncertainty, including reining in spending and managing their debt levels, with nearly a quarter – 24% – saying they were paying down debt faster,” said Ramaselwana.

Debt levels remain a key concern for many consumers, with higher interest rates affecting decisions to apply for additional credit or refinance. A third of Botswanans (33%) plan to apply for or refinance credit in the next 12 months. Of those who plan to apply, new personal loans are the most common product (27%), followed by new mortgages (22%) and new credit cards (21%).

Managing financial choices

Nearly all consumers (94%) believe access to credit and lending products is important to achieve their financial goals. However, around two in three (65%) believe they lack adequate access to credit and lending products. Younger generations are especially concerned: 73% of Gen Z (born 1995–2004) and 62% of Millennials (born 1980–1994) were unsatisfied with their credit access.

Most consumers (93%) acknowledge the significance of credit monitoring, but less than half of consumers (43%) reported checking their credit reports at least monthly. Ramaselwana says it is especially concerning that nearly a third (32%) of consumers said they didn’t monitor their credit reports at all. This highlights the need for more education and tools to support regular credit monitoring.

Almost half (46%) of respondents believed their credit scores would increase if financiers incorporated non-standard information into their assessments, such as rental payments and nontraditional payment data (i.e., gym memberships) to help ease or make full assessments of the individual if credit information is limited.

Identity risks and usage

Digital fraud attempts are becoming an increasing issue, with 72% of those surveyed reporting being targeted by online, email, phone call or text message fraud attempts over the past three months. The most common types of fraud schemes among those reporting being targeted included money or gift card scams (51%), vishing (fraudulent phone calls to trick consumers into revealing their data, 38%) and phishing (fraudulent emails, websites, social media posts or QR codes designed to steal data, 35%).

As a result, consumers are concerned about the security of their personal information, with 94% expressing concern about divulging their details. Eight in 10 (80%) are worried about identity theft, and nearly the same number (77%) worry about invasions of their privacy when asked about the reason for being concerned with sharing personal information. The data highlights the crucial importance of trust and robust cybersecurity measures in financial transactions and interactions.

ENDS

Notes to Editors:

TransUnion’s Consumer Pulse Study was conducted in Botswana for the first time in Q3 2022. The Study was conducted again in region in Q2 2023.

^[1] Trading Economics source here.

^[2] The survey polled 401 adult Botswana consumers between 5–22 May 2023.

According to the TransUnion Consumer Pulse Study for Q2 2023, the major drivers for increases in income included starting a new business (22%), increased salary (20%) or finding a new job (14%). Conversely, job loss (20%) was the primary cause of decreased incomes, highlighting the significance of employment stability for households’ financial well-being.

As a result, many families made budget adjustments in the past quarter, including cutting back on discretionary spending (63%), canceling subscriptions or memberships (35%) and reducing digital services expenses (27%).

This cautious outlook on expenditures suggests that consumers are prioritising financial responsibility, indicating a noteworthy shift in spending habits, says Weihan Sun, Director of Research and Consulting at TransUnion Africa.

To meet their financial obligations, consumers are employing a range of tactics. Overall, 41% plan to make partial payments, 28% will dip into their savings and 24% will look to borrow money from friends or family members. And while 38% anticipate increased bills and loans and 53% expected a continued decline in discretionary spending, nearly a third (32%) expected to reduce large purchases such as appliances and vehicles.

Managing financial choices

Nearly all consumers (94%) believe access to credit is crucial. However, around two in three (65%) believe they lack adequate access to credit and lending products. Younger generations are especially concerned: 73% of Gen Z (born 1995–2004) and 62% of Millennials (born 1980–1994) were unsatisfied with their credit access.

One in three consumers plan to acquire new credit or refinance existing credit. In all, 44% of Gen X (born 1965–1979) respondents plan to apply for new credit products within the next year. Overall, 27% of respondents plan to apply for a personal loan, 22% a new mortgage, and 21% a credit card. Four in 10 (41%) of respondents considered applying for credit but ultimately abandoned their plans, either finding an alternative source (26%) or feeling the cost of new credit or refinancing was too high (24%).

Most consumers (94%) acknowledge the significance of credit monitoring, but less than half of consumers (43%) regularly check their monthly credit reports. However, Sun says it is ‘concerning’ that 32% of consumers do not monitor their credit reports. This highlights the need for more education and tools to support regular credit monitoring.

Almost half (46%) of respondents believed their credit scores would increase if businesses incorporated non-standard information into their assessments, such as rental payments, gym membership payments, short-term loan history, and buy now, pay later (BNPL) services.

Half of respondents conduct at least 25% of their transactions online, with Gen Z leading this trend, but Gen X and Millennials (at 58% and 50%, respectively) are also conducting significant numbers of online transactions.

Identity risks and usage

Digital fraud attempts remain a pressing issue, with 64% of those surveyed being targeted by such schemes over the past three months, and 8% were targeted and fell prey to these schemes. The most common types of fraud schemes included money or gift card scams (51%), vishing (fraudulent phone calls to trick consumers into revealing their data, 38%) and phishing (fraudulent emails, websites or social media posts designed to steal data, 35%).

As a result, consumers are concerned about the security of their personal information, with 94% expressing concern about divulging their details. Eight in 10 (80%) are worried about identity theft, and nearly the same number (77%) worry about invasions of their privacy. The data highlights the crucial importance of trust and robust cybersecurity measures in financial transactions and interactions.

“Overall, it’s clear that consumers are increasingly aware of the risks associated with digital fraud. With rampant scams, consumers are cautious about sharing personal information, fearing privacy invasion and identity theft. This indicates a significant need for stronger security measures and robust fraud prevention strategies in the digital space,” said Sun.

Consumers can get their free annual credit report from TransUnion here.

According to the African Development Bank Group, real GDP growth is projected to recover to 5.5% in 2022, based on a revival in domestic demand as the effects of the pandemic recede and a rebound in commodity prices as economies reopen globally. However, this could be impacted by growing inflationary pressures caused by the war in the Ukraine. There are also threats from persistent drought and the adverse effects of poor economic conditions in South Africa on Botswana’s exports and SACU receipts.

SMEs remain the cornerstone of Botswana’s economy. They account for 50% of private sector employment, and 15- 20% of Botswana’s GDP. However, one of their main economic constraints is a shortage of entrepreneurs capable of running larger firms, and approximately 80% of small enterprises in Botswana cease trading within five years, according to Botswana Institute for Development Policy Analysis.

That’s why it’s vital that local SMEs are able to access data-based tools to enable a shift to ecommerce and global markets to accelerate revenues, reduce costs, and manage their risks, explains Rafi Kotler, Head of Commercial Bureau Solutions at TransUnion Africa.

“Big data and analytics used to be seen as something only large enterprises could afford, or use. That’s changing rapidly, with Botswana’s SMEs increasingly turning to data-driven business intelligence tools to grow their businesses, access new markets and develop their pipelines,” says Kotler.

“They’re looking to quality data and enhanced analytics to gain a complete view of customers, suppliers, partners and prospects, and make informed decisions. That’s where analytical techniques are critical for deciding which market to target, where to find customers within those markets and how to manage the risks of transacting with business customers at arm’s length.”

Local SMEs’ ability to access data on global markets was boosted last year by a partnership between TransUnion Africa and global commercial data company Dun & Bradstreet, which gives SMEs access to two key Dun & Bradstreet services, D&B Hoovers and DataVision. Hoovers is a web-based lead prospecting tool that allows companies to build local and global pipelines, and DataVision helps companies assess markets and develop entry strategies through powerful data analytics.

Effectively, this makes Botswana’s businesses visible on the global stage and gives them access to international trade opportunities. “For companies that want to jump-start their businesses, or accelerate their growth into global export markets or the e-commerce space, these platforms provide an intuitive experience to decide which markets they should enter and which customers they should reach out to in those markets,” said Kotler.

They also have the added benefit of helping businesses organise their own data, and combining it with 400 million international D&B sourced records. This allows companies to get on with running their businesses, and competing in global markets, rather than spending their time cleaning up spreadsheets.

The partnership with Dun & Bradstreet builds on TransUnion’s existing range of fraud and risk solutions, which help Botswana's businesses form trusted relationships and make more informed decisions. This includes products that address fraud, identity and risk management, automated decisioning, and marketing across a range of sectors, including banking, retail, insurance, automotive and telecommunications.

“This won’t just help Botswana’s businesses rebound from the effects of the Covid-19 pandemic, but will open up entirely new growth avenues. And ultimately, that will be good for the country, and the continent’s economy,” said Ramaselwana.

SMEs can sign up for a free webinar, How News Can Boost B2B Sales’ on July 21 from 10:00 to 11:00; and a free Masterclass, Expand your Exports’, on July 28 from 10:00 to 11:00. Both events are part of the TransUnion D&B Hoovers Webinar & Masterclass Series.