Namibians lose N$6 million every month to fraudsters

Namibians are losing at most N$6 million every month to fraudsters in the banking sector, equivalent to about N$200 000 per day.

The Bank of Namibia 2025 annual report shows that for the year ended 2025, scammers got away with N$73.9 million. This is a N$19 million increase when compared to 2024.

The central bank says card fraud decreased to N$19.9 million, down from N$21 million in 2024.

Electronic funds transfer (EFT) fraud rose to N$53 million, up from N$33 million in 2024, while e-money fraud increased to N$1 million from N$451 000 in 2024.

“This escalation was primarily attributable to vishing and phishing schemes, in which fraudsters impersonate legitimate institutions to deceive individuals into disclosing sensitive information such as usernames and passwords,” the central bank says.

These attacks commonly occur through fraudulent emails, text messages and phone calls, or spoofed websites that appear authentic.

Over the last decade (2015 to 2024), Namibians have lost N$210 million to a web of fraud and deception, bringing the total to N$283 million.

Meanwhile, the central bank, which is the regulator for the banking sector, says it has implemented a comprehensive and coordinated fraud mitigation strategy.

Last year, the bank said that, to address the increasing prevalence of card and EFT fraud, the industry had introduced various measures.

These included enhanced monitoring for fraudulent transactions and the blocking of e-commerce sites identified as sources of fraudulent activity.

The banking sector was also required to implement a PSD-12 to implement controls such as two-factor authentication, requiring two forms of verification before a payment is executed.

However, the statistics show that fraud cases continue to rise.

“The bank also engaged with industry participants during the reporting year to emphasise the need for enhanced controls in the management and protection of client data,” the central bank says.

It adds that it had engaged with the industry to stress the importance of heightened controls for managing client data confidentially.

As at the time of going to print, the four major commercial banks, which hold 97% of the market, had received questions concerning the frauds.

The banking sector is largely dominated by foreign-owned banks, with three major banks being subsidiaries of South African banking groups, and the remaining one fully locally owned.

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