(3 Minutes Read)
Namibian banks have suffered losses exceeding N$65 million to fraud between January and October 2025, according to the Bank of Namibia—an alarming increase compared to the N$54 million recorded in 2024. The central bank cautions that escalating digital crime is placing both consumers and financial institutions at heightened risk as the country’s fintech sector rapidly expands.
Deputy Governor Leonie Dunn said fraud has grown sharply in recent years, fuelled by both traditional scams and advanced cybercrime tactics. She noted that banking sector losses have risen dramatically from N$8.7 million in 2020 to more than N$54 million in 2024, surpassing N$65 million in just the first 10 months of 2025. Small traders, gig workers and other informal-sector participants who increasingly rely on digital tools remain especially vulnerable.
Dunn highlighted the rise of social engineering schemes as the most concerning trend, alongside ongoing risks such as POS skimming, fake EFTs and card-not-present fraud. She stressed that digital financial growth must not compromise consumer protection, adding that banks have strengthened fraud detection, tightened security measures and expanded customer awareness initiatives. The Bank of Namibia has also bolstered regulations through BID-30 and PSD-12, and launched the Consumer Connect platform with NAMFISA and CRAN to support affected consumers.
Linda Aipinge-Nakale, Acting Executive Director at the Ministry of Information and Communication Technology, emphasised the importance of public awareness. She stated that even the strongest systems cannot protect individuals who lack knowledge about the threats they face. The ministry, in partnership with SALT Essential IT, conducts weekly cybersecurity awareness sessions to help citizens identify scams, safeguard devices and protect personal data.
Bankers Association of Namibia CEO Dantagos Jimmy said fraud is inflicting real harm on ordinary people, affecting pensioners, students, entrepreneurs, farmers, civil servants and public institutions. She noted that increased use of mobile money, online banking and card payments has expanded exposure to phishing, identity theft, insider breaches, cross-border cybercrime and AI-driven deception.
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While technology contributes to the problem, it also forms part of the solution, with tools such as AI, data analytics, biometrics and behavioral monitoring helping to detect and prevent fraud. She underscored that combating fraud requires a shared responsibility between regulators, law-enforcement agencies, technology partners, financial institutions, consumers and industry bodies like BAN. If any party fails to uphold its role, she warned, the entire system becomes vulnerable.
