South Africans are facing a wave of sophisticated online scams, fuelled by the widespread availability of personal data across digital channels.
Fraudsters now understand who people bank with, which mobile providers they use, and the email and phone numbers required to reach them, said RelyComply.
A single convincing email, branded like a genuine bank message, can be enough to trick someone into clicking a malicious link and handing over sensitive account information. In a matter of seconds, savings can disappear.
The risks increase significantly during the busy festive shopping season, when e-commerce activity spikes. Criminals understand that this period often means consumers are distracted, rushed, and less vigilant. Globally, more than $1.03tn has reportedly been lost to scams and fraud in the past year. This highlights the urgent need for transparency in digital banking and a renewed focus on customer education in order to rebuild trust.
Digital banking has transformed financial access across Africa, particularly for mobile-first users in South Africa. Yet this rapid growth has also created new opportunities for criminals. According to South Africa’s Banking Risk Information Centre (SABRIC), 65.3% of all reported fraud incidents in 2024 were linked to digital banking, with total losses exceeding R1.4bn. Despite repeated educational campaigns, the Financial Services Conduct Authority issued more than 100 public warnings in the same year as scams continued to evolve.
One alarming case saw a victim lose more than R6m after scammers claimed to be bank employees using a fake trading app connected to the Johannesburg Stock Exchange. These types of stories damage consumer confidence and weaken the relationship between banks and their customers, which is critical for financial stability.
Phishing remains one of the most common and persistent scam types. Criminals are now able to clone logos, mimic email addresses and create highly believable apps. Deepfake images and voice technology are also being used to impersonate trusted individuals, making it difficult for even knowledgeable, tech-savvy consumers to recognise fraud attempts.
Regulators and banks are beginning to respond to the rising threat. South Africa’s crypto landscape has been particularly exposed, highlighted by the Mirror Trading International scandal, which defrauded investors out of more than R8bn. Industry observers suggest there remains a gap in anti-money laundering (AML) procedures, risk monitoring, and real-time reporting across financial institutions and FinTechs. Strengthening customer onboarding, due diligence, and suspicious activity detection will be crucial in slowing the scale of digital fraud.
Banks must also improve communication around scam reporting. Many victims feel ashamed or unsure about how to report incidents, and studies show that even when scams are reported, a significant proportion of victims receive no follow-up. Increasing transparency, sharing statistics, and making reporting easier can help build collective awareness and reduce overall risk.
SABRIC advises consumers to remain cautious. Customers should never share PIN numbers or ID documents, should ignore unsolicited calls that demand urgent action, and should only download banking apps from official app stores. Banks must also provide clear, easy-to-find information on their websites and apps about how to report fraud, ensuring that victims receive support quickly.
Better consumer education, stronger AML controls and tighter industry collaboration are needed to prevent future losses. Protecting personal finances will depend on both individual vigilance and institutional commitment to tackling online financial crime.
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