The rate of suspected digital fraud attempts from Kenya in Q2 2022 decreased by -27% compared to the same period last year, compared to a -14% decline shown globally. A quarterly fraud analysis report by TransUnion shows that the rate of suspected digital fraud attempts originating from Kenya declined across half of the industries tracked.
The data on fraud against businesses is based on intelligence from billions of transactions and more than 40,000 websites and apps tracked by the credit reporting agency.
Globally, suspected digital fraud attempt rate increased of 159% in Q2 2022, while the global logistics sector increased by 13%. The report indicates a -20% decrease in the rate of suspected digital fraud attempts in insurance worldwide for transactions originating from Kenya. The most common type of fraud reported to TransUnion by its insurance customers in Q2 2022 was first-party application fraud, which involves fraudulent applications containing intentionally inaccurate information with the intention of receiving certification, lower rates or better terms for a policy/contract.
Year-on-Year Growth Rates of Digital Fraud Attempts (from Q2 2021 to Q2 2022)
| Industry | Kenya | Global |
| Logistics | 61% | 13% |
| Gambling | 36% | -14% |
| Retail | 23% | -28% |
| Travel & Leisure | 13% | -28% |
| Financial Services | -5% | -22% |
| Insurance | -20% | 159% |
| Telecommunications | -42% | -12% |
| Communities (online dating, forums, etc.) | -70% | -8% |
Shifts in Kenya Run Counter To Global Trends
The rate of suspected digital fraud across all industries in Kenya decreased 27% in Q2 2022 with largest declines from Kenya-based transactions in communities (which include online forums and dating) (-70%), telecommunications (-42%) and insurance (-20%).
The logistics industry saw the biggest increase in the rate of suspected digital fraud attempts coming from Kenya , an increase of 61% during that period. The most common fraud in the sector was shipping fraud, where buyers spoof shipping addresses, or a seller receives payment for goods or services, but never ships the goods to the buyer. Other industries with increases coming from Kenya were gambling (36%) and retail (23%).
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