South Africa’s banking industry is entering one of its toughest periods yet, as new figures show a sharp escalation in financial crime. The South African Banking Risk Information Centre’s (SABRIC) Annual Crime Statistics for 2024 reveal increasingly sophisticated syndicates leveraging advanced technologies, with experts warning of a looming “fraud storm” in 2025.
Digital banking fraud has surged by 86% in 2024, from 52,000 cases in 2023 to nearly 98,000, with losses climbing 74% to ZAR 1.888 billion. Banking apps remain the prime target, accounting for 65% of digital fraud and losses exceeding ZAR 1.2 billion. Criminals are using AI-driven scams, deepfake impersonations, QR code phishing, SIM swaps, and malicious apps to bypass security.
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Despite banks strengthening systems, human error remains the greatest weakness. Social engineering dominates, with victims tricked through phishing emails and follow-up vishing calls into revealing PINs, OTPs, and credentials.
Application fraud is also growing. Vehicle asset finance (VAF) fraud jumped nearly 50%, with potential losses of ZAR 23 billion. Unsecured credit fraud spiked 57.6% with losses doubling to ZAR 221.7 million. Even home loan fraud, though slightly down, now relies on AI-modified documents and deepfake impersonations.
Card fraud continues to rise, up 26.2% to ZAR 1.466 billion, while “card-not-present” scams (using stolen card details online) remain dominant.
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Experts warn that AI, ‘fraud-as-a-service’ networks, and cryptocurrencies are fueling this surge, making scams harder to detect and funds harder to trace. High-net-worth individuals and businesses are increasingly targeted by business email compromise (BEC) and executive impersonation attacks.
For consumers, this means greater risks in digital and card-based transactions. SABRIC advises avoiding predictable banking patterns, enabling multi-factor authentication, and being cautious with unsolicited emails, calls, or QR codes.
Banks are responding with AI-driven fraud detection, biometric authentication, and closer collaboration with law enforcement. Still, SABRIC cautions that without decisive action, 2025 could bring even greater financial losses than the record ZAR 1.888 billion stolen in 2024.
