Digital banking fraud in South Africa surges by 86%, approaching losses of approximately R1.9 billion
The South African Banking Risk Information Centre (SABRIC) has released its Annual Crime Statistics for 2024, highlighting a worrying trend of rising financial fraud in the country's banking sector.
According to the report, losses from card-related crime increased by 26.2%, reaching a staggering R1.466 billion. This figure is a testament to the growing sophistication of cybercriminals and their advanced tactics.
One such tactic is the use of AI-modified payslips and deepfake impersonations to deceive banks. Home loan fraud, though slightly down in reported cases, remains highly lucrative, with fraudsters increasingly turning to these methods.
Digital banking crime also saw a significant rise, with losses reaching R1.888 billion, an 86% increase from the previous year. Banking apps are the prime target for cybercriminals, accounting for 65% of all digital fraud cases.
"Card-not-present" fraud remains the most dominant form of card fraud. This type of fraud, where the physical card is not used, has become easier for criminals due to the widespread adoption of online and mobile banking.
Social engineering is the primary tool used by criminals to manipulate victims into revealing sensitive information. Phishing emails and vishing calls from fraudsters posing as bank staff are common methods used in these scams. Unsolicited messages, emails, and QR codes should be treated with extreme caution.
The banking sector is not standing idle in the face of these threats. The industry is ramping up its defenses by adopting AI-driven fraud detection, biometric authentication, and closer collaboration with law enforcement.
However, the report also warns of several converging forces creating the conditions for a "fraud storm." These include the widespread availability of artificial intelligence, the growth of underground "Fraud-as-a-Service" networks, and the increasing use of cryptocurrencies to launder stolen funds.
SABRIC advises customers to avoid predictable banking patterns, never share confidential information, use multi-factor authentication whenever possible, and be vigilant against social engineering tactics. By taking these precautions, individuals can help protect themselves from the increasing threat of financial fraud.
Despite these measures, SABRIC cautions that criminals are evolving just as rapidly as security measures. Unless decisive action is taken, South Africa may see losses in 2025 surpassing the record-breaking R1.888 billion stolen in 2024.
It is important to note that there is no publicly available information identifying the leader of the South African Banking Risk Information Centre in 2025.
Another area of concern is unsecured credit fraud, which rose sharply by 57.6%. More than 62,000 fraudulent applications were reported, with actual losses more than doubling to R221.7 million.
Application fraud has become another major growth area, with VAF fraud surging by almost 50% in 2024, potentially resulting in losses of R23 billion.
Human error remains the biggest vulnerability in banking security systems. By being aware of these threats and taking steps to protect themselves, individuals can help reduce the impact of financial fraud on the banking sector and their own personal finances.
