Rwandan consumers face the highest risk of digital fraud during account creation, with 2.8 per cent of attempts identified as suspicious between February and May, according to a new report by TransUnion. Globally, the TransUnion half year fraud trends report shows that account creation fraud also led the consumer lifecycle worldwide, with 8.3 per cent of attempts flagged as potentially fraudulent. Account creation fraud, also known as “account origination fraud” or “new account fraud (NAF),”occurs when an individual uses stolen or falsified personal information to open an account, usually with a financial institution, retailer, or service provider. ALSO READ: Over 60% Rwandans targeted by fraud in 2024, survey shows According to Amritha Reddy, Senior Director of Fraud Product Management at TransUnion Africa, Rwanda’s fraud landscape is expanding alongside digital adoption, particularly in banking and retail. “Low digital literacy, weak consumer protection, and limited cybersecurity capacity are major vulnerabilities. There is a growing call for multi-stakeholder collaboration, regulatory strengthening, and consumer education,” she said. Reddy added, “The country’s approach is policy-driven, with a focus on regulatory alignment and international cooperation, with the government having implemented data protection laws, cybersecurity frameworks, and AI governance policies.” The report also found that money or gift card scams were the most common, reported by 49 per cent of Rwandans who said they were targeted via email, online platforms, phone calls, or text messages. ALSO READ: Three arrested over mobile money fraud after fuel stations lose millions of Francs Other frequently reported scams included phishing at 31 per cent, vishing at 28 per cent, and money mule or third-party seller scams at 25 per cent. Nearly one in ten Rwandans, or 9 per cent, said they fell victim to these scams during the same period. Globally, about 48 per cent of consumers reported exposure to fraud, while 42 per cent of Rwandans were unaware they were being targeted, highlighting gaps in fraud recognition and consumer awareness. For Rwandan consumers, the communities sector, including websites like online forums and dating platforms, experienced the highest suspected digital fraud rate at 2.5 per cent. Other targeted industries included financial services at 1.4 per cent and gaming platforms such as online sports betting at 1.1 per cent. On a global scale, the video gaming sector recorded the highest rate of suspected digital fraud at 13.5 per cent, marking a 28 per cent increase compared to the first half of 2024. ALSO READ: Over 30% Rwandans targeted by online fraud, money scams “As the risk from consumer scams threatens identity integrity, organisations should rely on a mixture of data, risk signals, technology and tools to prevent fraud,” said Reddy. She noted that business leaders consider identity verification, device reputation, and behavioural biometrics as the top three fraud prevention technologies. “Businesses and financial institutions should also invest in sustained education and awareness campaigns to mitigate schemes like account takeovers. Preventing fraud must, by necessity, be a multi-pronged strategy if businesses and consumers are to stay ahead of fraudsters whose strategies continue to evolve,” she said. “By harnessing advanced technologies, fostering cross-sector collaboration, and prioritising consumer trust, Rwanda can chart a path toward a secure and inclusive digital future,” Reddy added.
