How SA is fighting financial fraud: an FSCA perspective

AS the financial sector evolves, so too does the nature of the risks we face. Fraud is no longer a peripheral concern that can be handled through routine controls. It has become a systemic threat, one that targets our institutions, our consumers, and the trust that underpins the entire financial ecosystem.

- RAMI MPETE

The shift to digital services, rapid adoption of fintech, and the pervasiveness of mobile transactions have expanded opportunities for innovation, but they have also expanded opportunities for exploitation.

The data speaks for itself. According to the South African Banking Risk Information Centre (SABRIC) Annual Crime Statistics 2024, there were nearly 98,000 digital banking fraud incidents in 2024, an 86% increase from the previous year. Losses amounted to a whopping R1,88 billion. This steep escalation tells us that fraudsters are moving faster, adapting quicker, and exploiting vulnerabilities across multiple platforms with far greater sophistication than before. The risk has become integrated into the digital infrastructure we rely on.

Artificial intelligence (AI) has intensified this pressure. Fraudsters now use AI to generate convincing deepfakes, clone voices, and construct synthetic identities. When prominent South Africans are impersonated in online scams, it reinforces a worrying reality: behavioural manipulation has become as powerful as technical intrusion. The threat now sits at the intersection of technology, psychology, and social engineering. This presents layered risks, which are operational, reputational, and systemic in nature.