Digital fraud schemes are on the rise in the country with 80 per cent of Kenyan having been targeted in the first three months of year, a new TransUnion’s Consumer Pulse Survey has shown.
From the findings a notable 72 per cent of respondents who reported being targeted by digital fraud schemes successfully avoided falling victim.
However, an additional 8 per cent were targeted and fell victim to these schemes.
The awareness of fraudulent schemes was significantly high; only 20per cent of consumers reported being unaware of any fraud schemes targeted at them. The lack of awareness was lowest among the younger generations.
“In Q2 2024, vishing (fraudulent phone calls to extract data) emerged as the most prevalent scam as cited by 45 per cent of respondents, surpassing money or gift card scams at 44 per cent,” said TransUnion Kenya CEO Morris Maina.
The Vishing scams increased by five percentage points in the first quarter of this year compared to 2023.
Smishing, which involves fraudulent text messages targeting data extraction, was reported by 44 per cent, an increase of four percentage points from Q2 last year.
Additionally, phishing which encompasses fraudulent emails, websites, social posts, QR codes, intended for data theft, rose by three percentage points to 36per cent.
Due to increased awareness, consumer concern regarding sharing personal information remained significant at 91 per cent in Q2 2023, albeit down from 94 per cent last year.
“Concerns about sharing personal information were prevalent across all generations,” the report states.
The survey has further revealed that the primary concerns among 81 per cent of Kenyans when it comes to sharing personal information are invasion of privacy, while 67 per cent fear identity theft.
Digital fraud on The Increase in Kenya
About 26 per cent of Kenyans were weary on sharing their personal data due to unsolicited marketing communications. This was higher than the 17 per cent who were keen to escape the government surveillance.
“The data highlights the importance of addressing these concerns to encourage wider adoption and use of digital services among Kenyan consumers. Strengthening security protocols and increasing awareness about safe digital practices can help mitigate these fears, ensuring that consumers feel secure and confident in the digital space,” added Maina.
As the digital economy continues to grow, safeguarding personal information will be paramount in fostering trust and promoting the benefits of digital services across Kenya.
According to the TransUnion 2024 State of Omnichannel Fraud Report, in 2023, the country experienced a 10.2 percent digital fraud rate in the online gaming sector.
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The report’s findings are based on proprietary insights from TransUnion’s global intelligence network, which was released yesterday.
Furthermore, the study shows that there has been an accelerating rate of digital fraud in other sectors of the country, such as retail, financial services, telecommunications, travel & leisure, and communities (online dating, forums, etc.).
“TransUnion found across industries in 2023, 3.3 per cent of all transactions where the consumer was in Kenya were flagged as being suspected Digital Fraud – a 16 per cent YoY decrease,” the study revealed.
