Recognising and avoiding digital banking scams

GIVEN the speed at which criminals are shifting to digital platforms to lure victims out of their hard-earned money, ordinary South Africans must learn how to protect themselves against scams.

- MAMUDUPI MAMPURU

According to the South African Banking Risk Information Centre (SABRIC) 2024 crime statistics report, digital banking fraud accounted for 65,3% of all reported incidents. Cases almost doubled in volume, rising from 31,612 in 2023 to 64,000 in 2024, while losses increased from R1 billion to over R14 billion.

SABRIC highlights that these incidents were the result of scammers tricking people into sharing personal details, rather than technical compromises of banking platforms.

Similarly, the Financial Sector Conduct Authority (FSCA) has warned of a rise in scams via SMS, WhatsApp, Telegram, fake social media pages, and fraudulent banking apps. In its 2024 Regulatory Actions Report, the FSCA noted that it had issued over 100 public warnings during that year, highlighting impersonations, deepfake ads, and finfluencer scams as growing threats.

The FSCA also continues cautioning the public against criminals posing as FSCA staff to extort money, phishing (emails or links posing as banks or the South African Revenue Service), and finfluencers promising guaranteed returns.

Regardless of the chosen method, the aim of scammers is the same, namely to steal as much money as possible, and as quickly as possible.

Why consumers fall for scams. Scammers exploit urgency, fear, and trust to trick people. It is therefore important to understand how anyone can easily become a scam victim, no matter their earnings, circumstances, or level of education. Scammers rely on:

Urgency: Creating panic to prevent clear thinking.