A recent report by TransUnion has revealed that digital fraud is on the rise in Kenya, with four in every five citizens saying they were targeted by scammers in the months leading up to the survey.

The findings, based on research conducted between November 21 and December 9, 2024, show that 82 percent of respondents encountered fraud attempts through emails, phone calls, text messages, or online platforms within a three-month period.

Of those targeted, 11 percent admitted to falling prey to the scams, underscoring the growing risk posed by cybercriminals as the country becomes increasingly digitized.

The report identified smishing fraudulent text messages aimed at stealing personal information—as the most prevalent scam, affecting 39 percent of respondents.

This was followed by phishing attacks through emails, websites, or QR codes (36 percent), and vishing, or deceptive phone calls (33 percent).

With Kenya’s mobile phone penetration exceeding 133 percent, fraudsters are exploiting the country's heavy reliance on mobile technology for daily communication and transactions.

“Given how integrated mobile phones are in everyday life here, it's no surprise digital fraud is a preferred tool for criminals,” said Amritha Reddy, TransUnion Africa’s senior director of fraud solutions.

Cybercriminals tend to exploit the most widely used communication channels in each region, according to TransUnion Africa’s Amritha Reddy, who noted that while attacks can happen at any time, fraudsters strategically focus on platforms with the highest user activity.

Though 71 percent of Kenyans reported dodging fraud attempts, a worrying 45 percent admitted to losing money to digital scams over the past year.

The top sources of financial loss included fake third-party sellers on legitimate e-commerce platforms (34 percent), unemployment scams (26 percent), and account takeovers (25 percent).

Kenya was ranked among the African countries most exposed to digital fraud in the TransUnion H1 2025 Update to the State of Omnichannel Fraud report, tying with Namibia for the second-highest number of affected individuals. Zambia recorded the lowest incidence.

Reddy said fraud on social and community platforms is not new, but 2024 saw a renewed surge in such activities.

The gaming industry emerged as the most targeted sector for digital fraud in Kenya last year, overtaking logistics, which led in 2023.

Suspected fraud attempts in gaming rose by 33.8 percent, pushing the sector’s fraud rate to 12.9 percent.

Globally, community platforms such as dating sites and online forums experienced the highest rate of digital fraud attempts in 2024, at 11.9 percent.

This was followed by the video gaming sector at 11 percent and the retail industry at 8 percent.

TransUnion’s Amritha Reddy attributed the surge to scammers exploiting the trust that typically exists within online communities. “Fraudsters prey on the confidence users place in one another on these platforms, often deploying a variety of scam solicitations,” she said.

The report also highlighted the growing financial impact of digital fraud. Across all surveyed countries, 29 percent of consumers reported losing money to online scams last year.

In Kenya, the median financial loss was Ksh116,108 significant, though still below the global median of Ksh226,132.

Interestingly, 19 percent of Kenyan respondents claimed they had not been targeted, raising concerns that many may be unaware they are being scammed, underscoring the need for heightened public awareness.

TransUnion’s findings were based on data from its TruValidate platform and insights gathered from a survey of over 500 Kenyans, along with consumers in countries such as South Africa, India, Brazil, the U.K., and the U.S.

Despite a drop-in fraud activity across two key sectors in Kenya, TransUnion’s Amritha Reddy stressed the continued need for vigilance and strong digital hygiene practices.

She noted that organizations leveraging identity, device, and behavioral analytics are better positioned to protect both themselves and their customers from the evolving threat landscape.

Kenyans rank among Africa’s most digitally engaged populations, yet they remain highly susceptible to online scams from mobile money and phishing schemes to fake investment deals, e-commerce fraud, romance scams, and bogus charities.

Ironically, Kenyans have also been linked to some of the continent’s most complex cybercrimes.

A separate report by The Gloceps pointed to weak awareness of emerging fraud trends among both consumers and financial service professionals as a key driver of online fraud in the country.

It called on the Ministry of ICT and the Digital Economy, in partnership with the National Treasury, to lead targeted public awareness campaigns on evolving cyber threats.

The report further urged financial institutions to align with national cybersecurity protocols and called for collaboration between the Ministry of Interior and private stakeholders to crack down on unregulated fintech operators fueling fraudulent activity.