Business Reporter
THE value of funds lost by the Namibian public via Electronic Fund Transfers (EFT) has increased significantly to N$53 million in 2025, compared to N$29 million in 2024.
This was revealed by the Bank of Namibia (BoN) in its 2025 annual report, in which it voiced concern over the increase in fraudulent transactions within the National Payment System (NPS), which it said has risen steadily over the past five years, with a marked increase recorded during the review period compared with 2024.
The Bank of Namibia explained that the escalation in EFT fraud 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.
These attacks commonly occur through fraudulent emails, text messages, phone calls, or spoofed websites that appear authentic. In contrast, e-money fraud declined to N$1 million from N$2.8 million in 2024.
The central bank noted that card fraud increased to N$19.8 million, up from N$19 million in 2024. This rise was largely driven by card-not-present (CNP) fraud on e-commerce platforms, where transactions are processed without multi-factor authentication and therefore do not require customer confirmation.
In response to the increasing fraud trends, the central bank, in collaboration with industry stakeholders, has implemented a comprehensive and coordinated fraud mitigation strategy.
“This strategy focuses on strengthening controls, enhancing fraud detection, and fostering cross-sector collaboration. Aggressive fraud awareness campaigns are being rolled out across the industry, and regulatory frameworks have been revised and continue to be reviewed to ensure that fraud risks are adequately addressed. Collaboration across multiple sectors, including telecommunications providers and law enforcement agencies, is planned for implementation in the coming year to further strengthen fraud prevention and response efforts,” BoN said.
The central bank added that ongoing awareness initiatives continue to educate customers on the importance of safeguarding confidential information and are expected to intensify in the next reporting period.
The Bank has also engaged with industry participants to emphasise the need for enhanced controls in the management and protection of client data. In addition, industry platforms, such as the Cybersecurity Council, have been mobilised to reinforce the importance of robust security measures in combating payment fraud.
Photos: Bank of Namibia (BoN)
