Financial Crime World

Financial Fraud on the Rise in South Africa

The South African banking landscape is experiencing a significant surge in digital fraud, with a 75.3% increase in cybercrime reported in 2018. This alarming trend highlights the need for consumers to stay ahead of the curve and protect themselves against financial fraud.

According to the South African Banking Risk Information Centre (SABRIC), bank-related violent attacks increased by 7% last year, while credit and debit card losses due to fraud decreased by 2.8%. However, digital crime remains a major concern, with online banking, banking apps, and mobile banking experiencing increases of between 35% and 100%.

Types of Financial Fraud

There are two primary types of financial fraud:

Digital Crime

  • This type of fraud involves using social engineering tactics to manipulate individuals into divulging sensitive information.
  • Phishing, vishing, email hacking, and other forms of online deception are used to target unprotected information.

Card Fraud

  • Credit and debit cards issued in South Africa are compromised through account takeovers, card-not-present (CNP), counterfeit, false applications, lost or stolen cards, and cards not received or issued.

Protecting Yourself from Financial Fraud

To safeguard against financial fraud, consumers must be vigilant when using their bank cards at ATMs and banks. Never disclose your PIN or password to anyone, and be cautious of individuals who may try to distract you while making transactions.

Online banking requires extreme vigilance, as fraud can occur in plain sight. Always use registered banking apps, be wary of phishing and vishing attempts, and never rush transactions online or in person.

Quick Tips to Prevent Financial Fraud

  • Do not disclose your PIN, password, and banking details to anyone without verification.
  • Be vigilant when making transactions online or in person.
  • Be wary of emails and phone calls requesting money.
  • If you suspect you are being scammed, stop all contact with the scammer and report it to the police or your bank.

By staying informed and taking proactive steps to protect themselves, consumers can minimize the risk of financial fraud and maintain their financial well-being.