By John Chola

Zambia has recorded the world’s highest rate of suspected digital fraud during the critical stage of creating new online accounts, according to a new global report from TransUnion.

The second quarter (H2 2025) Update to the Top Fraud Trends Report found that in the first half of the year, a striking 11.5 percent of all account creation attempts originating from Zambia were suspected to be fraudulent.

This figure is significantly higher than the global average of 8.3 percent, highlighting a specific vulnerability for Zambian consumers and businesses at the point of entry.

The report identifies a dual threat facing the country: a high volume of fraudulent account creation and a pervasive risk of consumer scams, with AI-driven fraud and synthetic identities emerging as significant new dangers.

“As mobile and internet penetration grow, fraud risks are expected to increase,” warned Amritha Reddy, senior director of fraud product management at TransUnion Africa.

Financial Services Sector Most Targeted

While the global video gaming industry saw the highest overall fraud rate (13.5 percent), the financial services sector was the most targeted industry for digital fraud within Zambia during H1 2025, with 1.9 percent of transactions flagged as suspicious.

Despite this leading position, the report also contained a positive trend: the volume of suspected fraud attempts in key sectors saw a dramatic decrease compared to the same period in 2024.

Fraud attempts in financial services fell by 68 percent, while retail saw a massive 94 percent drop, suggesting that anti-fraud measures may be having an effect.

Widespread Consumer Scams and Awareness Gaps

The threat isn’t limited to digital transactions.

A consumer survey revealed that an overwhelming 85 percent of Zambians were targeted by fraud via email, phone calls, or text messages between February and May 2025.

The most common scam was the money or gift card fraud, reported by 49 percent of those targeted.

This was followed by smishing (fraudulent texts) at 42 percent, phishing (fraudulent emails) at 35 percent, and vishing (fraudulent phone calls) at 31 percent.

Alarmingly, 15 percent of targeted Zambians were completely unaware they had been approached by a fraudster, pointing to a critical gap in public awareness.

Nearly 1 in 10 Zambians Fell Victim

The human cost of this fraud wave is significant. The survey found that 9 percent of Zambians targeted by scams from February to May 2025 ultimately fell victim, placing the country in the mid-range compared to other African nations studied.

“As scammers continue to evolve their tactics, it’s more important than ever for consumers to regularly review their credit reports,” advised Reddy.

She urged for a multi-pronged defence strategy, combining advanced technologies like identity verification and behavioural biometrics with sustained public education.

Reddy concluded that by harnessing data intelligence and fostering cross-sector collaboration, “Zambia can chart a path toward a secure and inclusive digital future,” turning trust into a shared responsibility.