Kenyans who fall victim to online fraud are losing more money than their counterparts across Africa, with new data showing that scams on legitimate e-commerce platforms have become the leading source of financial losses.
A report released by TransUnion on Tuesday, June 9 revealed that Kenyan consumers who reported losing money to digital fraud in the last year suffered a median loss of Ksh108,132 — the highest among African countries surveyed.
The findings come despite an overall decline in suspected digital fraud attempts in Kenya. According to the report, 2.3 per cent of digital transaction attempts involving Kenyan consumers in 2025 were flagged as suspected fraud, lower than the global average of 3.8 per cent.
However, experts warn that fraudsters are increasingly shifting tactics, targeting consumers through trusted online platforms rather than overtly suspicious channels.
Among Kenyans who reported losing money to digital fraud over the past year, 39 per cent said they were victims of third-party seller scams on legitimate e-commerce websites, making it the most common form of fraud-related loss.
Money mule scams ranked second at 30 per cent, followed by account takeover schemes at 27 per cent and identity theft at 26 per cent.
The findings suggest that fraud is increasingly occurring within familiar online environments where consumers are more likely to lower their guard.
"Fraud tends to do the most damage in places where people already rely heavily on digital services, not just where those services are new," said Amritha Reddy, Senior Director of Fraud Product Management at TransUnion Africa.
"In Kenya, mitigating against fraud risks is now part of everyday digital activity."
The report points to Kenya's rapidly expanding digital economy as a key factor attracting increasingly sophisticated fraud schemes. As mobile money usage, online transactions and real-time payments continue to grow, fraudsters are adapting their methods to exploit weaknesses in digital identity systems and consumer trust.
Data from the report shows that the highest risk of suspected fraud in Kenya occurs during account creation. In 2025, 4.5 per cent of account creation attempts were flagged as potentially fraudulent, compared to 2.2 per cent during account logins and 0.9 per cent during financial transactions.
According to TransUnion, this indicates that criminals are increasingly attempting to establish fake or manipulated identities before carrying out fraudulent activities.
"While onboarding controls remain important, fraud pressure in Kenya is increasingly visible at access points," Reddy noted.
"The next fraud battle won't be fought at onboarding — it will be at re-entry."
The report also highlighted sectors facing the greatest fraud threats. Online gaming and betting platforms recorded the highest suspected fraud rate, with 15.6 per cent of transaction attempts flagged as potentially fraudulent.
The sector also experienced a 97 per cent increase in suspected fraud attempts compared to the previous year.
Video gaming platforms followed with a fraud rate of 9.1 per cent, while government-related services recorded a rate of 6.3 per cent.
Insurance, logistics, retail and financial services also experienced notable levels of suspected fraud, although several sectors recorded declines in fraud volumes compared to 2024.
The findings come as Kenya continues to deepen its reliance on digital services, with millions of consumers increasingly conducting financial transactions, shopping and accessing services online.
At the same time, consumers are demanding stronger protections. According to the survey, 88 per cent of Kenyans said the security of their personal data was the most important factor when deciding who to transact with online. Another 87 per cent cited the importance of an easy payment process, while 79 per cent prioritised simple login and authentication systems.
The report was based on a survey of 495 Kenyan consumers conducted between November and December 2025, alongside fraud intelligence gathered from TransUnion's global monitoring network.
With fraudsters continuing to evolve their tactics, the report warns that trust in digital platforms could increasingly depend on how effectively businesses and institutions protect users from emerging threats.
