Digital fraud schemes are increasingly prevalent in Kenya, with a recent TransUnion Consumer Pulse Survey revealing that 80% of Kenyans were targeted in the first three months of the year. Notably, 72% of those targeted successfully avoided falling victim, while 8% unfortunately did not.
Awareness of these fraudulent schemes is relatively high, with only 20% of consumers unaware of any attempts made against them, particularly among younger individuals.
In Q2 2024, vishing—fraudulent phone calls aimed at data extraction—emerged as the most common scam, reported by 45% of respondents, closely followed by money or gift card scams at 44%. The prevalence of vishing increased by five percentage points compared to the previous year. Additionally, smishing (fraudulent text messages) was noted by 44% of respondents, rising by four percentage points, while phishing (fraudulent emails and websites) increased by three percentage points to 36%.
Despite heightened awareness, consumer concerns about sharing personal information remain significant, with 91% of respondents expressing worry—though this is a slight decrease from 94% last year. The primary fears include invasion of privacy (81%) and identity theft (67%), with 26% wary of unsolicited marketing communications, compared to 17% concerned about government surveillance.
Morris Maina, CEO of TransUnion Kenya, emphasized the importance of addressing these concerns to promote the adoption of digital services. Strengthening security measures and enhancing awareness of safe online practices are vital in building consumer confidence in the digital landscape.
The survey also highlighted a 10.2% digital fraud rate in the online gaming sector in 2023. The findings, based on TransUnion’s global intelligence network, indicate a growing trend of digital fraud across various sectors, including retail, financial services, telecommunications, and online communities. Overall, 3.3% of transactions by Kenyan consumers were flagged as suspected digital fraud, reflecting a 16% year-over-year decrease.
Navigating the Rise of Digital Fraud in Kenya: Insights and Concerns
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