BoN records increase in the use of counterfeit money

Hertta-Maria Amutenja

The Bank of Namibia (BoN) has recorded 206 incidents where counterfeit banknotes were used in the span of a year.

According to the central bank’s 2022 annual report, the number of incidents represents an increase of 32.9 percent during the year in review.

“Two-hundred-and-six (206) counterfeit notes were recorded in 2022 and it is more than the 155 recorded in the previous year. However, the counterfeit notes remained of poor quality and below the Bank’s threshold of 10 pieces per million in circulation, as well as the industry standard of 70 pieces per million in circulation,” read the report.

The report states that the N$200 banknote was the most counterfeited.

“The N$200 banknote denomination was the most counterfeited at 55.8 percent, whereas no counterfeits were recorded for the N$30 commemorative banknote. The Bank has noted a steady decline in the volume of counterfeited banknote pieces over the past five years,”

The report also states that fraudulent transactions committed within the National Payment System have increased over the past five-year period and the total value of fraudulent transactions increased substantially last year compared to 2021.

“The industry recorded increases of N$638 000, N$11.5 million and N$5.9 million for the card, EFT, and e-money streams, respectively, compared to 2021. Payment card fraud increased by 9 percent, EFT by 80 percent, and e-money payments fraud by 62 percent,” it states.

Additionally, the bank said Card-Not-Present payment incidents that were carried out through Internet banking platforms and/or mobile applications were the main cause of the rise in payment card fraud. Phishing was primarily used to commit EFT fraud, whereas phone scams targeted wallets in particular to commit e-money payment fraud.

“The total value of fraud attributable to the card, EFT, and e-money streams for the period under review amounted to N$7.4 million, N$14.5 million and N$9.6 million, respectively. The total fraud perpetrated within the NPS remained within the fraud safety index indicator of 0.05 percent as per the Bank’s Strategic Goal, with a figure of 0.00223 percent being recorded,” states the report.

Earlier this month the police arrested two men in Windhoek in connection with possessing counterfeit money.

Khomas police Spokesperson Warrant Officer Silas Shipandeni said the suspects, one Cameroonian national and one Namibian national, were found in possession of fake Namibia and United States dollars with a face value of N$17 800 in counterfeit N$200 notes.

The suspects were allegedly also in possession of N$2 313 in authentic currency

Related Posts