Zambia Records Highest Rate of Suspected Digital Fraud at Account Creation, TransUnion Warns
Zambia has recorded the highest rate of suspected digital fraud at account creation globally, according to the newly released TransUnion H2 2025 Update to the Top Fraud Trends Report. The data reveals that 11.5% of all account creation attempts in the first half of 2025 in Zambia were suspected to be fraudulent, significantly above the global average of 8.3%.
The report draws from TransUnion’s global intelligence network, which analyses billions of transactions from more than 40,000 websites and apps across 18 countries. It shows that fraud risks continue to rise as digital adoption accelerates.
TransUnion Africa Senior Director of Fraud Product Management, Amritha Reddy, said Zambia faces a growing threat from sophisticated digital fraud schemes, with AI-driven fraud and synthetic identities emerging as key concerns.
“Digital fraud is increasing in Zambia as mobile and internet penetration grows,” she said. “Fraud risks are expected to rise, driven by new technologies enabling fraudsters to bypass traditional security systems.”
The report highlights that digital account takeovers globally rose by 21% year-on-year between H1 2024 and H1 2025. Over a four-year period, account takeover attempts soared by 141%, reflecting persistent vulnerabilities in digital security.
Reddy urged businesses to move beyond reactive measures: “As account takeover fraud surges, protecting customer accounts is not just a priority — it is a business imperative.”
Among industries analysed in Zambia, the financial services sector experienced the highest rate of suspected digital fraud attempts at 1.9% in H1 2025.
Fraud attempt rates by sector in Zambia:
- Financial services: 1.9%
- Gaming (online betting, poker): 1.2%
- Retail: 1.2%
- Communities (forums, dating platforms): 0.9%
Despite the high fraud rate in financial services, the country saw declines in the volume of fraud attempts across all sectors, suggesting improved detection techniques.
Globally, the video gaming industry registered the highest suspected digital fraud attempt rate at 13.5%, a 28% increase from 2024. The rise is attributed to gaming platforms’ high digital engagement and valuable in-game transactions, which are increasingly targeted by fraudsters.
The report’s consumer survey reveals that 85% of Zambians said they were targeted by online, email, SMS or phone fraud between February and May 2025 — well above the global average of 48%.
The most common fraud types reported in Zambia were:
- Money or gift card scams — 49%
- Smishing (SMS scams) — 42%
- Phishing — 35%
- Vishing (voice call scams) — 31%
Nearly 1 in 10 Zambians (9%) said they fell victim to fraud during this period, placing the country mid-range among African nations surveyed.
Reddy emphasised the need for businesses to adopt multi-layered fraud prevention strategies, highlighting three priority technologies:
- Identity verification
- Device reputation analysis
- Behavioural biometrics
She also noted the importance of consumer education: “Preventing fraud must be a multi-pronged strategy. Businesses and consumers need to stay ahead of evolving tactics. By prioritising trust and collaboration, Zambia can build a secure and inclusive digital future.”
TransUnion encouraged Zambians to regularly review their credit reports to ensure accuracy and detect suspicious activity early.
