Digital fraud schemes are on the rise in the country, with 80% of Kenyans targeted in the first three months of the year, according to a new TransUnion Consumer Pulse Survey.
The survey found that 72% of those who were targeted managed to avoid falling victim to these schemes, while 8% were successfully defrauded.
Awareness of fraudulent schemes was notably high, as only 20% of consumers reported being unaware of any fraud attempts. Younger generations showed the highest levels of awareness.
“In Q2 2024, vishing (fraudulent phone calls to extract data) was identified as the most common scam, reported by 45% of respondents, surpassing money or gift card scams at 44%,” said TransUnion Kenya CEO Morris Maina.
Vishing scams increased by five percentage points in the first quarter of this year compared to 2023.
Smishing, involving fraudulent text messages to extract data, was reported by 44% of respondents, a rise of four percentage points from Q2 last year.
Furthermore, phishing, which involves fraudulent emails, websites, social media posts, and QR codes designed to steal data, rose by three percentage points to 36%.
Consumer concern about sharing personal information stayed significant at 91% in Q2 2023, though it had decreased from 94% the previous year due to greater awareness.
“Concerns about sharing personal information were common across all generations,” the report notes.
The survey also highlighted that 81% of Kenyans are primarily worried about privacy invasion when sharing personal information, while 67% expressed concerns about identity theft.
Additionally, 26% of respondents were cautious about sharing their personal data due to concerns over receiving unsolicited marketing communications, a figure higher than the 17% worried about government surveillance.
Maina emphasized, “These findings underscore the need to address these concerns to promote wider adoption of digital services among Kenyan consumers. Enhancing security measures and raising awareness about safe digital practices can help alleviate these concerns, ensuring consumers feel safe and confident online.”
As Kenya’s digital economy continues to grow, safeguarding personal information will be crucial in building trust and encouraging the benefits of digital services across the country.
According to the TransUnion 2024 State of Omnichannel Fraud Report, in 2023, digital fraud in the online gaming sector in the country reached a rate of 10.2%.
The report utilizes insights from TransUnion’s global intelligence network, released recently.
Moreover, the study reveals a rising trend of digital fraud across other sectors in Kenya, including retail, financial services, telecommunications, travel & leisure, and online communities (such as dating platforms and forums).
“TransUnion observed that across various industries in 2023, 3.3% of transactions involving consumers in Kenya were flagged as suspected digital fraud—a 16% decrease compared to the previous year,” the study highlighted.
