A report by American credit bureau, TransUnion, has revealed that credit card fraud is the most common type of online scam that faces most Kenyans.
In the report titled Global Digital Fraud Trends released on Wednesday, July 27, the online scams targetting Kenyan's bank accounts was ranked top at 68 per cent while identity theft came second at 61 per cent.
Social engineering trick, phishing, which is used to lure victims to reveal personal details such as passwords and bank account details came third at 60 per cent.
However, the 2022 report noted that incidents of online fraud in the country had significantly reduced this year compared to last year.
"Global online fraud rate dropped by 22 per cent compared to the same period last year. In Kenya, digital fraud rates dropped by a staggering 61 per cent," read the report in part.
The decline was attributed to the security measures various companies had put in place to protect their clients from these attacks.
However, Africa's TransUnion Head of Fraud, Amritha Reddy, cautioned that fraudsters have developed new tactics to continue with their scamming spree.
“What we observed in Kenya and globally is that sophisticated fraudsters are shifting their focus to target new industries as sectors previously targeted have ramped up fraud prevention measures. In other words, fraudsters are constantly seeking out new opportunities based on vulnerabilities.
“What’s critical is that companies don’t become complacent with fraud prevention measures as fraudsters become ever more sophisticated. At the same time, companies should leverage this temporary shift in fraudulent activity to focus on optimising customer experience without compromising security," Reddy stated.
Additionally, the report detailed that the Kenyans took measures to protect themselves against fraud on online platforms.
As per the report, Kenyans under the Generation Z bracket (1997 - 2010) prefer document verification, Millennials (1981 - 1996) and Baby Boomers (1955 and 1970) prefer one-time passcodes while Generation X (1965 - 1980) prefer knowledge-based verification.
"Innovations, such as facial recognition or document verification, can add friction but when executed correctly, can also speed up processes or help a business position themselves as customer friendly.
"Multilayered identity solutions help businesses create the type of secure and trusting digital experience consumers crave," read the report in part.
