National Financial Ombudsman warns of rising virtual banking card fraud

THE National Financial Ombud Scheme (NFO) announces a sharp rise in digital banking fraud complaints, with cases surging from 1,436 between January and May 2024 to 2,483 during the same period in 2025, a staggering 73% year-on-year increase.

- DIEKETSENG MALEKE

The NFO says while ATM card complaints also increase, from 237 to 332, they remain significantly lower than virtual card fraud cases. Between January 2024 and May 2025, digital fraud complaints outnumbered ATM-related complaints by 3,350, signalling a dramatic shift in card fraud from plastic to virtual. With virtual banking cards now available across all major digital banking platforms, and easily loaded onto mobile phones and wearable devices, the NFO confirms that virtual cards are rapidly overtaking traditional physical cards and cash in popularity.

“Unfortunately, this digital alternative is also increasingly being used by fraudsters when targeting unsuspecting bank customers,” the NFO warns.

The National Financial Ombud Scheme is a unified dispute resolution body comprising four former industry ombud offices: the Ombudsman for Short-Term Insurance, the Ombudsman for Long-Term Insurance, the Credit Ombud, and the Ombudsman for Banking Services. It offers its services free of charge to consumers.

The NFO highlights the convenience of virtual cards, which can be accessed directly through secure banking apps. Whether shopping online or tapping a device in-store, consumers enjoy seamless payment capabilities.

“The growing adoption of these methods is clearly reflected in the rising volume of transactions made via virtual cards. Virtual cards are designed for secure online transactions and come with a unique card number, expiration date, and CVV, just like a physical card, but they offer extra security because they can’t be lost, stolen, or duplicated,’ the NFO says.