Digital fraud prevalent in Namibian retail sector
In 2023, Namibia witnessed the highest suspected digital fraud attempts in retail, peaking at 3.4%, albeit dropping by 21% Year-on-Year (YoY).Travel and leisure experienced the most significant surge in suspected digital fraud at 67%, followed by a 37% rise in gaming fraud YoY. These insights stem from TransUnion's 2024 State of Omnichannel Fraud Report.
Despite a 1% YoY decline, 1.2% of transactions in Namibia were flagged as suspected digital fraud in 2023. Globally, 13.5% of new accounts were suspected to be fraudulent, often initiated by fabricated or stolen identities, indicating a shift in fraud tactics towards early engagement in transactions.
Transactions during account creation, such as signup and registration, saw rampant digital fraud across industries, with retail leading at 44.7%, followed by travel and leisure (36.0%) and gaming (31.5%).
Lara Burger, TransUnion Namibia's country manager, highlighted the shift towards creating new fraudulent accounts using synthetic identities.
In Namibia, suspected digital fraud mainly occurred at account login, reaching 1.6%, with variations across industries.
Globally, 5% of digital transactions in 2023 were suspected fraud, marking a 14% YoY increase and a staggering 105% growth from 2019 to 2023, outpacing overall digital transaction growth. Retail topped the list with a suspected fraud rate of 8.7%, up 21% YoY, while telecommunications experienced a 111% YoY increase, reaching 4.5%.
Burger emphasised the vulnerability of retailers to account takeover due to stolen credentials from data breaches. TransUnion's insights were derived from its TruValidate product suite, which detects fraudulent indicators in real-time or upon investigation.
The report draws from TransUnion's global intelligence network, encompassing multiple countries, including Namibia, Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia.