Namibian banks lack clear refund policies for fraud victims as losses exceed N$6 million monthly

Namibian commercial banks currently lack policies to refund clients who are victims of fraud, despite the Bank of Namibia reporting that over N$6 million is lost to fraudsters monthly, amounting to more than N$200,000 daily. The central bank's 2025 annual report indicates N$73.9 million was siphoned from the national payment system in the last year, a N$19 million increase from 2024. Frans Kapofi, Minister of Defence and Veterans Affairs, who lost N$200,000 to fraud in 2022, advocated for a policy to compel banks to refund scammed clients, noting he only recovered N$98,000. While Nedbank and Bank Windhoek provided detailed responses, Standard Bank Namibia offered a generalized statement, and First National Bank did not respond to inquiries about refunds. Banks generally place liability on clients, especially if they authorized transactions, even under deception. Nedbank and Bank Windhoek state that refunds are assessed case-by-case and are not guaranteed if customers voluntarily approved payments or shared confidential information. Several clients, including a pensioner who lost N$121,000, reported being denied refunds. This contrasts with international trends, where regulators in the United Kingdom and the European Union are shifting the burden of proof to banks, mandating refunds for victims of authorized push payment fraud and 'spoofing' unless gross negligence by the customer can be proven.