Alarming Surge in Digital Banking Fraud in South Africa

Published 7 months ago

South African digital banking platforms witnessed a significant increase in fraudulent activities in 2022, primarily targeting banking applications and online banking platforms. The South African Banking Risk Information (Sabric) Annual Crime Stats reported a 24% rise in incidents of digital banking fraud.

Financial Losses Skyrocket

The financial losses due to these fraudulent activities escalated dramatically, with a 68% increase from R440 million in 2021 to R740.8 million in 2022. The figures suggest a growing concern for online safety and the need for enhanced security measures.

Social Engineering Techniques Used by Cybercriminals

Cybercriminals utilized a wide range of social engineering techniques to exploit unsuspecting users. These included spear phishing, where a specific individual or group is targeted with information known to be of interest to them, vishing, a fraudulent practice involving phone calls or voice messages pretending to be from reputable companies to extract personal information, and pretexting.

Banking Application Fraud on the Rise

Banking application fraud witnessed a significant escalation, with incidents increasing by 36% and associated losses rising by 68%. Remarkably, this segment represented nearly half of all digital banking crimes, marking a critical area of focus for improving digital banking security.