South Africa Sees 86% Surge in Digital Banking Fraud, Losses Near R1.9 Billion

South Africa’s banking sector is entering one of its most challenging periods yet, with the latest crime statistics pointing to a sharp rise in financial fraud. The South African Banking Risk Information Centre (SABRIC) Annual Crime Statistics for 2024  reveal that fraud syndicates are becoming increasingly sophisticated, technologically advanced, and harder to detect, setting the stage for what experts warn could become a “fraud storm” in 2025.

The most dramatic surge has been recorded in digital banking crime, which increased by 86% in 2024, rising from 52,000 incidents in 2023 to almost 98,000 reported cases. Losses climbed by 74% year-on-year, reaching a record R1.888 billion. Banking apps have become the prime target for cybercriminals, accounting for 65% of all digital fraud cases, with losses exceeding R1.2 billion. Criminals are deploying increasingly advanced tactics such as AI-generated scams, deepfake impersonations, QR code phishing (“quishing”), SIM swap fraud, and malware disguised as legitimate mobile applications.

SABRIC’s report highlights that despite strengthened banking security systems, the biggest vulnerability remains human error. Social engineering is now the primary tool of criminals, who manipulate victims into handing over sensitive information such as PINs, OTPs, and login credentials. In many instances, victims first receive a phishing email and are then targeted with a follow-up vishing call from fraudsters posing as bank staff, tricking them into authorising fraudulent transactions.

Beyond digital fraud, application fraud has become another major growth area. Vehicle Asset Finance (VAF) fraud surged by almost 50% in 2024, with potential losses estimated at R23 billion. Fraudsters are using cloned vehicles, synthetic identities, and AI-generated documents to exploit weaknesses in financing systems. Unsecured credit fraud also rose sharply by 57.6%, with more than 62,000 fraudulent applications reported. Actual losses more than doubled to R221.7 million. Meanwhile, home loan fraud, though slightly down in reported cases, remains highly lucrative, with fraudsters increasingly turning to AI-modified payslips and deepfake impersonations to deceive banks.

At the same time, card fraud continues to rise, despite the growing use of digital banking channels. Losses from card-related crime increased by 26.2% in 2024, reaching R1.466 billion. “Card-not-present” fraud, where stolen card details are used for online transactions, remains the most dominant form of attack.

Analysts warn that several converging forces are creating the conditions for a “fraud storm.” The widespread availability of artificial intelligence is enabling criminals to scale their operations with more convincing scams. Underground “Fraud-as-a-Service” networks now allow syndicates to purchase phishing kits, malware, and mule accounts, lowering the barriers to entry for new fraudsters. At the same time, cryptocurrencies are increasingly being used to launder stolen funds, making recovery even more difficult. High-net-worth individuals and businesses are also being targeted with highly tailored attacks such as Business Email Compromise (BEC) and executive impersonation scams.

For South Africans, this means that the risks associated with digital and card-based transactions are higher than ever. SABRIC advises customers to avoid predictable banking patterns, never share confidential information, use multi-factor authentication whenever possible, and treat unsolicited messages, emails, and QR codes with extreme caution.

The banking sector, meanwhile, is ramping up its defenses by adopting AI-driven fraud detection, biometric authentication, and closer collaboration with law enforcement. However, SABRIC cautions that criminals are evolving just as rapidly as security measures. Unless decisive action is taken, South Africa may see losses in 2025 surpassing the record-breaking R1.888 billion stolen in 2024.