Report shows losses traceable to fraud on the rise in Zambia, as digital transactions grow

The explosion of digital transactions, accelerated adoption of digital technologies, and increasing appetites for faster access to funds and credit have led to an increase in fraud losses in Zambia.

According to TransUnion Zambia Chief Executive Officer, Mildred Stephenson, this was particularly noticeable on digital channels.

She stated that rate of digital fraud attempt by sector tend to change rapidly, as fraudsters innovatively shifted focus to where there were new opportunities to make financial gain.

She said this as part of her comment on the report done by global information and insights provider, TransUnion, which indicate that over 42 percent of Zambians had been targeted by fraud from September to December 2022.

Stephen said fraudsters would be agile in targeting consumers and organisations as Zambia navigated this current period of global economic uncertainty.

“Consumers are expecting organisations to protect their identities and online accounts, and those companies that do not adequately honour those preferences may lose business as a result.

“Zambian businesses need to take proactive steps to protect themselves and their customers. This means ensuring that identity proofing and authentication is up-to-date and as robust as possible,” she said.

According to the TransUnion in its 2023 State of Omnichannel Fraud Report, Zambian consumers were primarily targeted by ‘phishing’ attacks, where fraudulent text messages attempt to trick them into revealing personal data.

Additionally, 36 percent of targeted Zambians experienced attempts to lure them into money mule scams, where they were solicited to transfer or move illegally acquired money on behalf of someone else.

During the same time, 35 percent of targeted Zambians experienced ‘phishing’ attempts, where fraudulent emails, websites or social posts attempted to steal their data, while 31 percent experienced ‘vishing attempts, where fraudulent callers tried to get them to reveal personal information.

“Of Zambian consumers surveyed, 75 percent said they had been targeted by an email, online, phone call or text message fraud scheme and 12 percent of those fell victim.

“Nearly one-third (32 percent) of the Zambians that had discovered that they were victims of fraud placed a freeze on their credit accounts, while 26 percent called the police,” the report showed.

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