Whilst Botswana ranks fifth lowest amongst 19 regions in terms of suspected digital fraud rates, specific industries, especially gaming, have faced heightened risks.
According to TransUnion’s State of Omnichannel Fraud Report of 2024, the gaming industry saw the highest levels of suspected digital fraud in Botswana during the first quarter, with 12.5% of gaming transactions flagged as suspicious. The financial services sector followed with a 3.9 percent suspected fraud rate, while retail saw 2.8 percent.
Botswana’s vulnerability to digital fraud is reflected in consumer reports. Between April and June 2024, 77% of local consumers reported being targeted by online scams, email phishing, phone fraud, or text message schemes. Only five percent of those targeted reported falling victim.
TransUnion’s Senior Director of Fraud Solutions, Amritha Reddy, highlighted the need for businesses to adopt advanced fraud prevention tools, including identity verification and synthetic identity detection, to counter increasingly sophisticated cybercriminal tactics.
“Fraudsters evolve rapidly, often outpacing traditional security measures,” Reddy said.
Beyond Botswana, the global landscape has seen significant increases in digital fraud. The communities industry experienced the largest share of suspected digital fraud globally, with an 11.5% rate in the first quarter. Common fraudulent practices include profile misrepresentation, where cybercriminals post inaccurate or fake information.
Within Botswana, specific vulnerabilities were noted in digital account creation and logins, with 3.7 percent of account openings and 3.1 percent of login attempts identified as potentially fraudulent.
TransUnion Botswana CEO, Kabelo Ramaselwana, noted that today’s fraud schemes are becoming increasingly adept at leveraging stolen or fabricated identity data, which intensifies the challenge of fraud prevention.
“Companies must ensure that fraud prevention efforts are both effective and efficient, reducing false positives and unnecessary business costs,” Ramaselwana emphasised.
Researchers said the findings highlight the urgent need for businesses, particularly in gaming and financial services, to implement robust fraud detection and prevention measures as Botswana’s digital landscape becomes increasingly complex and challenging to navigate.
Globally, synthetic identity fraud has surged, increasing 153% from the second quarter of 2023 to the first quarter of 2024, while electronic fund transfer fraud rose by 113% over the same period. Promotion abuse, in which individuals exploit marketing offers for personal gain, accounted for 3.6 percent of all digital fraud incidents worldwide.
