…fraud losses hit N$48 million as EFT and card scams rise
Namibia’s e-money transactions surged to N$43.7 billion in 2024, from N$37.7 billion in 2023, according to the Bank of Namibia’s (BoN) Annual Report 2024.
Transaction volume rose to 86 million from 72 million.
“In 2024, the value and volume of e-money increased to N$43.7 billion (N$37.7 billion in 2023) and 86 million (72 million in 2023), respectively. This increase can be attributed to consumer behaviour changing due to ease of use and access, particularly to wallets,” BoN said.
E-money schemes remained close-looped within individual banking institutions, reflecting a shift to digital payments.
“The use of E-money schemes, which are currently close-loop, continued to increase in 2024. The Bank observed a significant rise in e-money use as a payment instrument, indicating a shift in consumer payment behaviour,” apex bank said.
EFT intrabank transactions declined during the period , as more consumers opted for E-money.
“The EFT intrabank transactions processed in 2024 amounted to 61 million (47 million in 2023), valued at N$827 billion, down from N$839 billion in 2023,” BoN reported.
Payment card intrabank transactions increased.
“Card transactions between merchants and customers of the same banking institution amounted to 98 million, valued at N$70 billion, a rise from N$58 billion and 84 million transactions in 2023,” BoN stated.
Namclear remained the sole payment service operator providing clearing services within the National Payment System (NPS) according to the central bank.
“It clears interbank EFT and card transactions, which are submitted to the Namibia Interbank Settlement System (NISS) for settlement. The value of EFT transactions processed by Namclear increased in 2024 compared to 2023,” the report stated.
EFT transactions dropped from 27 million to 26 million during the period, but their value rose to N$404 billion in 2024 from N$388 billion in 2023, a 4% decrease in volume but a 4% increase in value.
“The rise in EFT value could be attributed to increased economic activity. Card payments continue to grow. In 2024, Namclear processed 111 million card transactions (84 million in 2023) valued at N$57 billion (N$42.6 billion in 2023), a 32% and 34% increase in volume and value, respectively,” BoN noted.
According the central bank,fraudulent transactions increased during the period under review, mainly due to transactions lacking one-time password (OTP) authentication.
“The industry reported an increase in card fraud amounting to N$19 million (up from N$18 million in 2023), primarily due to card-not-present (CNP) fraud on e-commerce platforms,” the report stated.
EFT fraud rose to N$29 million from N$17 million in 2023, driven by phishing attacks.
E-money fraud declined to N$2.7 million from N$11 million in 2023 due to enhanced wallet controls and consumer awareness.
To combat fraud, the financial sector implemented enhanced transaction monitoring and blocked fraudulent e-commerce sites.
“The Bank has engaged with the industry to stress the importance of heightened controls for managing client data. Platforms such as the Cybersecurity Council have been mobilised to emphasise security against payment fraud,” BoN said.
