Namibians lose millions to fraud

FRAUDSTERS tried to con Namibians out of N$44 million last year as internet fraud and fax scams increased by more than a 1 000 per cent.

Not all of them succeeded, but Namibians nevertheless lost N$21,1 million to fraudsters and thieves, more than double what they lost in 2010.’These figures suggest that the banking institutions’ control mechanisms to prevent and combat fraud and other economic crimes may require improvement in order to more effectively combat these crimes,’ the Bank of Namibia (BoN) said in its latest annual report.About N$12,4 million – nearly 60 per cent of all the money lost through economic crimes in 2011 – were losses suffered as a result of internet fraud.Ndangi Katoma, director of strategic communications and financial sector development at the BoN, yesterday said internet fraud had increased by about 1 678 per cent from 2010 to 2011.Victims of fax scams lost N$1,2 million last year. These scams skyrocketed by about 1 094 per cent compared to 2010, Katoma said.Internal bank fraud also grew, as did ATM fraud.Katoma said N$2,9 million were lost to internal bank fraud in 2011, about 288 per cent more than the previous year. ATM fraud jumped by about 46 per cent and Namibians were N$600 000 poorer as a result.Although credit card and cheque fraud, as well as cash theft dropped in 2011, Namibians were still N$4 million out of pocket as a result.Credit card fraud decreased by 12 per cent and totalled N$500 000. Fraudulent cheques to the tune of N$400 000 were issued, about 65 per cent less than in 2010. Cash of N$3,1 million was stolen, down 54 per cent from 2010.In total, economic crimes increased by 176 per cent from 2010 to 2011.Katoma said commercial banks are ‘required to continue to be vigilant and to educate customers in preventative measures relating to all categories of fraud’.He said the BoN and the bank industry have embarked on initiatives to mitigate the risk of fraud, especially card fraud. These include amending the law so that it is illegal to have or use a card skimming device, as well as implementing data security standards for the payment card industry.Katoma said a card fraud forum has also been established and that some banks have installed ultraviolet light checks to pick up cloned cards. This has led to a ‘significant reduction’ in fraud, he said.