Electronic funds transfer fraud in Namibia surged by nearly 82 percent in a single year, reaching N$52.9 million in 2025 from N$29.1 million in 2024, according to the Bank of Namibia’s annual report released last week. The dramatic spike, driven by sophisticated phishing and “wishing” scams, has exposed vulnerabilities in the country’s rapidly digitising financial system, prompting regulators and banks to scramble for stronger defences.
The total fraud bill for the national payment system climbed to N$73.9 million last year, with EFT fraud accounting for more than 70 percent of that amount. Card fraud also rose, albeit more modestly, to N$19.9 million, while e‑money fraud dropped sharply to N$1.1 million. But the near‑doubling of EFT‑related losses stands out as a stark warning that cyber‑criminals are shifting their tactics, preying on consumers who have embraced digital banking but may not yet be equipped to recognise increasingly convincing impersonation schemes.
According to the Bank’s annual report, the escalation was largely attributed to “wishing and phishing schemes, in which fraudsters impersonate legitimate institutions to deceive individuals into disclosing sensitive information such as usernames and passwords.” These attacks commonly occur through fraudulent emails, text messages, phone calls, or spoofed websites that appear authentic. The report notes that many of the successful EFT frauds involved situations where transactions were processed without multi‑factor authentication, particularly on e‑commerce platforms.
The problem is not limited to consumers. A thematic review of two domestically systemically important banks (DSIBs) found “material gaps requiring strengthened oversight and remediation across institutions.” The Bank’s supervision department noted that fraud and financial crimes increased markedly, elevating operational risk for banks and cyber risk exposure for customers. Key fraud typologies observed included ATM fraud, card fraud, mobile application fraud, and BIN attacks, alongside the dominant EFT schemes.
Industry scrambles to close gaps
In response, the Bank of Namibia and industry stakeholders have rolled out a “comprehensive and coordinated fraud mitigation strategy,” according to the report. The strategy focuses on strengthening controls, enhancing fraud detection, and fostering cross‑sector collaboration. Aggressive fraud awareness campaigns are being conducted across the industry, and regulatory frameworks have been revised to ensure that fraud risks are adequately addressed.
Collaboration across multiple sectors, including telecommunications providers and law enforcement agencies, is planned for implementation in the coming year. The Bank has also engaged with industry participants to emphasise the need for enhanced controls in the management and protection of client data. Industry platforms, such as the Cybersecurity Council, have been mobilised to reinforce the importance of robust security measures in combating payment fraud.
Public education has become a frontline defence. In October 2025, the Bank launched a multimedia fraud awareness campaign aimed at shielding the public from rising scams. Deputy Governor Leonie Dunn joined leaders from across the financial sector at the inaugural Fraud and Cybersecurity Risk Awareness Summit, held under the theme “Strengthening Trust and Resilience in Namibia’s Financial System.”
Regulators move to modernise safeguards
The surge in fraud comes as Namibia undertakes a far‑reaching modernisation of its payment infrastructure. In 2025, the Bank issued the Open Banking and Namibia Quick Response Code (NAMQR) Standards, intended to promote interoperability, competition, and innovation through secure data‑sharing and standardised QR‑based acceptance. While these reforms are designed to expand consumer choice and enable seamless digital payments, they also underscore the need for robust security frameworks to keep pace with new technologies.
The Bank also revised its Determination on the Conduct of Electronic Fund Transfers (PSD‑9) and issued a directive on the regularisation of cross‑border low‑value EFTs within the Common Monetary Area (PSDIR‑10). These measures aim to improve efficiency and transparency, but they also impose new compliance requirements on payment service providers, who must now migrate low‑value cross‑border EFTs to a dedicated regional retail payment system by 2027.
Yet the regulatory push alone cannot close the gaps. The Bank’s digital maturity assessments, which evaluated six institutions, highlighted significant challenges such as fragmented customer experiences, limited use of advanced data analytics, continued reliance on legacy core systems, and shortages of specialised digital talent. These weaknesses leave both financial institutions and their customers more exposed to fraud.
Complaints rise alongside fraud
The impact on consumers is reflected in the rising number of complaints handled by the banking sector. Total complaints increased from 2,153 in 2024 to 2,401 in 2025. Common categories included poor customer service, consumer fraud, unauthorised deductions, and default payments. The Bank of Namibia itself resolved 59 complaints, with 30 cases resulting in monetary refunds totalling N$0.5 million. While the refund amount was lower than in the previous year, the increase in complaints points to growing frustrations among bank customers, many of whom have fallen victim to scams.
The banking sector overall remained well‑capitalised and profitable in 2025, with total assets reaching N$188 billion. But the rapid digitisation of financial services—while broadening access—has introduced new operational risks that institutions are still learning to manage. The Bank’s report notes that reported fraud incidents “rose markedly, driven by rapid digitalisation and the growing sophistication of fraud schemes, including staff impersonation, phishing, and identity theft.”
A call for heightened vigilance
For now, the Bank of Namibia is urging the public to remain vigilant. Awareness campaigns are being stepped up, targeting civil servants and pensioners, who have increasingly become victims of fraudulent schemes. Outreach activities have been conducted in various regions, and the Bank participated in trade fairs to educate the public on how to identify common features of illegal financial schemes.
At the same time, the Bank is pushing the industry to accelerate its own digital transformation. The Digital Maturity Assessment initiative is intended to help institutions identify strengths and gaps, guiding strategic investments in security, talent, and customer experience. But with fraudsters already adapting their methods, the window for closing these gaps is narrowing.
As the report makes clear, the near‑doubling of EFT fraud in a single year is not just a statistic—it is a signal that Namibia’s financial system, while resilient in many respects, must urgently address the human and technical vulnerabilities that criminals are exploiting with growing sophistication.