Namibia’s financial sector incurred direct financial losses of N$19 million in 2024, largely from card fraud, while electronic funds transfer (EFT) fraud losses increased to N$29 million, according to TransUnion.
The telecommunications sector also recorded major breaches during the year, with reported losses exceeding N$5.4 billion, TransUnion said.
Speaking at a Fraud and Cybersecurity Risk Awareness Summit, TransUnion Chief Executive Officer, Lara Ensulin said gift card fraud was the most common fraud type, accounting for 57% of reported cases.
This was followed by vishing at 33%, phishing at 29%, and smishing at 25%.
Ensulin said fraud and data breaches carry wider economic costs beyond direct losses, including reduced investor confidence, slower digital transformation, higher compliance costs and reputational damage that can deter foreign investment and weaken economic growth.
She said fraudsters are increasingly using artificial intelligence tools, including deepfakes and synthetic identities, to run more sophisticated cross-border schemes that exploit weak customer onboarding processes.
According to Ensulin, 2.8% of newly created accounts were identified as fraudulent, while account takeover fraud rose by 21% year on year.
She said Namibia’s key fraud concerns include credit and payment card fraud at 59%, stolen identity at 54%, and data breaches at 31%. While 12% of consumers reported no concern about fraud, about 20% of Namibian consumers experienced a data breach, a 7% increase from the previous year.
“The number of Namibians who were targeted increased, but fewer ultimately fell victim to fraud,” Ensulin said.
She added that 8% of individuals were targeted and fell victim to fraud, 57% were targeted but avoided losses, and 35% were unaware they were being targeted.
Ensulin said stronger digital fraud mitigation could reduce fraud losses by up to 27% a year.
“Trust must be built through layered security, real-time analytics and consumer empowerment. Trust is the currency of the digital economy,” she said.
