Digital fraud schemes continue to loom large, with the latest study from TransUnion revealing that 72 per cent of consumers in the second quarter of this year reported being targeted by such schemes, though they managed to avoid falling victim.

However, the threat is far from insignificant, as the same study highlighted that 8 per cent of those targeted were not as fortunate, succumbing to the scams.

The study, conducted as part of TransUnion’s Consumer Pulse, sheds light on the evolving landscape of digital fraud, particularly the rise of vhishing and phishing attacks.

Vhishing, which involves fraudsters luring victims over the phone to divulge sensitive information, saw a notable surge.

"Vhishing cases where fraudsters con people over the phone by enticing them to reveal sensitive information increased to 45 per cent in the second quarter of the year, compared to 40 per cent reported during the same period last year," stated Morris Maina, CEO of TransUnion Kenya.

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Additionally, vhishing, which uses fraudulent mobile text messages to deceive individuals into downloading malware or sending money to cybercriminals, also saw an increase, reaching 44 per cent compared to 40 per cent in the same quarter last year.

Phishing, another prevalent form of digital fraud where attackers trick individuals into revealing sensitive information or installing malicious software, also saw a concerning rise.

According to Maina, phishing increased to 36 per cent from 33 per cent recorded last year during the same period under review.

Despite the widespread awareness of these fraudulent activities, the study underscores a persistent rise in scam cases.

Consumers remain highly concerned about sharing personal information, with 91 per cent expressing concern, albeit slightly lower than the 94 per cent reported in the same quarter of the previous year.

The study highlighted that these concerns predominantly stem from fears of invasion of privacy, cited by 81 per cent of respondents, and the threat of identity theft, noted by 67 per cent.

"Digital fraud remains a significant concern," Maina emphasised, noting the ongoing need for robust security measures and consumer education to maintain trust in digital platforms.

The study suggests that such initiatives are crucial to fostering greater confidence among consumers and encouraging broader adoption of digital services.

The report clearly illustrates that while awareness and vigilance are on the rise, so too is the sophistication and frequency of digital fraud.

As consumers become more educated about the risks, fraudsters are evolving their tactics, necessitating a continuous and proactive approach to digital security and consumer protection.