A report by Trans Union 2024 has revealed that digital fraud attempts coming from Kenya are the highest in the retail market. This means that a significant portion of online and mobile transactions in Kenyan retail are flagged as potentially fraudulent.
In the report concluded after an online survey of 15,372 adults that was conducted between April 29–May 20, 2024, Kenya had the 11th highest rate of suspected Digital Fraud in the first half of 2024 out of the 19 countries where the survey was conducted.
The report detailed that the Kenyan retail sector experienced 11.7 per cent of Digital Fraud attempts. This was the highest rate of suspected digital fraud in retail compared to other industries.
Why it matters: This is a concerning trend for Kenya, placing its retail sector as the most gullible to digital fraud attempts. This comes as the Kenya Kwanza administration has been increasing the country’s digital footprint in a bid to encourage more Kenyans to take up online jobs.
ICT Permanent Secretary John Tanui
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John Tanui
Dig deeper: So, how are Kenyans scammed in the retail sector, you ask? Well, fraudsters create fake accounts to exploit discounts or promotional offers and steal credit card information to make purchases during sales or promotions. They also manipulate coupon codes or referral programs for personal gain.
Generally, 4.6 per cent of all attempted digital transactions where the consumer was located in Kenya were identified as suspected Digital Fraud.
According to the report, of the 4.6 per cent attempts, 80 per cent of Kenyan consumers were targeted by fraud, with 8 per cent falling victim to the fraud attempts.
Apart from the retail industries, gaming, and communities (online dating, forums among others) were the industries that had the highest suspected Digital Fraud rate for transactions.
The Philippines topped the list at 18.0 per cent digital fraud rate followed by Colombia with 17.4 per cent, with the Dominican Republic coming in third with 16.1 per cent. The United Kingdom came in fourth with 14.1 percent.
In Africa, Botswana came in 10th with 12.5 per cent followed closely by Kenya at the 11th position with 11.7 per cent.
Bigger picture: These findings now emphasize the urgent need for Kenyan retailers to bolster their fraud prevention strategies, especially for online transactions.
Experts warn that Kenyan retailers must be particularly watchful of the promotion domain by implementing stringent verification processes for promotional offers and closely monitoring customer behavior for any suspicious activities are crucial steps to mitigate this risk.
The report comes at a time when Kenyans enjoy numerous promotions under the numerous Black November offers, where items in the retail sector are placed on offers, with codes and reductions in prices.
A person about to click an app on a phone.
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Canva
