Over 30% Rwandans targeted by online fraud, money scams

At least 32 percent of Rwandans were targeted by fraud and money mule scams from September to December 2022, according to a TransUnion report. In a 2023 State of Omnichannel Fraud Report by the global agency of credit reporting, Rwandan consumers were primarily targeted by third-party seller scams on legitimate websites where fraudsters ask them to transfer or move illegally-acquired money on behalf of someone else. ALSO READ: Cyber fraud cases on the rise as scammers steal over Rwf280m in 2020 Overall, seven percent of Rwandan consumers said that they were targeted by and have become a victim of an email, online, phone call or text messaging fraud scheme in the period under review, and 56 percent said they had been targeted but did not fall victim. Of those Rwandans that discovered that they were victims of fraud, only 23 percent contacted the police and the affected credit card provider or retailer, and 19 percent placed a freeze on their credit, stated the report. ALSO READ: Fifteen arrested in mobile money scam crackdown 29 percent of Rwandans had experienced phishing attempts – fraudulent emails, websites of social posts intent on stealing data – while 26 percent experienced smishing in which fraudulent text messages attempted to trick them into revealing personal data. Additionally, 22 percent of Rwandans experienced vishing attempts – fraudulent phone calls where fraudsters tried to get them to reveal personal information. ALSO READ: Case of 20-year-old accused of Rwf70m fraud goes to prosecution According to the report, the digital fraud trends point to industries that saw significant growth in consumer digital engagement. For instance, digital fraud attempts targeting travel and leisure increased to 117 percent, logistics by 63 percent and financial services 39 percent, from 2019 to 2022. Each of these industries experienced significant transaction volume increases during this time, as the Covid-19 pandemic drove shifts in consumer behavior, particularly on digital usage. Globally, the most targeted industry is online sports betting at 7.5 percent followed by retail at 7.2 percent, while financial services is at 4.2 percent. Samuel Tayengwa, acting Chief Executive Officer at TransUnion Rwanda, said the explosion of digital transactions, the accelerated adoption of digital technologies, and increasing appetites for faster access to funds and credit, have led to an increase in fraud losses, particularly in digital channels. “Rates of digital fraud attempts by sector tend to change rapidly, as fraudsters innovatively shift focus to where there are new opportunities to make financial gain. They will be agile in targeting consumers and organisations as Rwanda navigates this current period of global economic uncertainty.” This is mainly reflected in the findings of the report where 44 percent of Rwandans don’t trust personal data to be secure, leading to abandoning online application or form for a financial or insurance product. Rwandan consumers are most worried about third-party seller scams, account takeover, stolen credit card or fraudulent charges, identity theft, money mule scams, and phishing (acquiring sensitive data by a perpetrator disguising as a legal business). Tayengwa noted that consumers are expecting organisations to protect their identities and online accounts, and those companies that do not adequately honour those preferences may lose business as a result. “Rwandan businesses need to take proactive steps to protect themselves and their customers, which means ensuring that identity proofing and authentication is up-to-date and as robust as possible,” he emphasized.

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Over 30% Rwandans targeted by online fraud, money scams