Banking Frauds on the Rise in South Africa

Despite a decrease in reported incidents of non-contact banking fraud, the gross losses have increased significantly in South Africa. According to data from the South African Banking Risk Information Centre (Sabric), there was a 45% increase in gross losses from R310 million in 2020 to R440 million in 2021.

Cybercriminals Target Online Banking

The biggest draw for cybercriminals has been exploiting the fact that many people now bank online, making it easier for them to use social engineering techniques to manipulate victims into disclosing confidential information. Online banking fraud is a small portion of incidents of digital crime but amounts to the second-highest portion of gross losses, with an average loss of R33,781 per incident.

Common Types of Financial Scams

Sabric has identified several common types of financial scams that have been on the rise:

• Vishing: Scammers phone victims and impersonate bank officials or service providers, using social engineering skills to manipulate them into disclosing confidential information.
• Phishing: Scammers send emails with links to fake websites that appear legitimate, prompting victims to verify or update contact details or sensitive financial information.
• SIM Swapping: Criminals intercept transaction verification tokens by diverting OTPs and RVNs through a victim’s mobile service provider, allowing them to access funds or validate transactions.
• Smishing: Scammers send text messages requesting victims to call a number or click on a link, which tricks them into revealing confidential banking information.

Protect Yourself from Banking Frauds

To protect themselves from these scams, Sabric urges bank customers to be cautious when sharing personal and confidential information. They should use their discretion when responding to requests for sensitive data and treat such requests with suspicion.