6 major scams targeting South Africans and their money in 2024

In 2024, bank fraud in South Africa has surged, with scammers employing increasingly sophisticated tactics to exploit individuals and businesses.

Major banks, including Absa, FNB, Capitec, Nedbank, Standard Bank, and Discovery Bank, have outlined six of the most prevalent fraud methods targeting South Africans over the course of 2024, emphasising the need for vigilance.

Phishing and vishing scams remain widespread. Scammers use fake emails, texts, or calls to trick victims into revealing sensitive information like passwords or one-time pins (OTPs).

Nedbank notes that scammers often pose as bank representatives or trusted entities, creating a false sense of urgency to extract personal details.

FNB has warned its customers never to share PINs or OTPs with anyone, highlighting that legitimate banks do not request such information via email or phone.

SIM-swap fraud continues to rise. This tactic involves fraudsters duplicating a victim’s SIM card by deceiving mobile service providers, enabling them to intercept banking OTPs.

SABRIC reports a 63% increase in such incidents in recent years, with average financial losses escalating.

Capitec advises its customers to monitor mobile network disruptions closely, as this can signal a potential SIM swap in progress.

A newer tactic, money mule scams, involves criminals recruiting individuals to use their bank accounts for transferring illicit funds under the guise of legitimate activities.

Vulnerable South Africans, often facing financial pressures, are promised compensation for their involvement.

The Financial Sector Conduct Authority (FSCA) has emphasised that victims can face legal repercussions, including being charged with facilitating money laundering, even if they were unaware of the scam’s full extent.

Fake social media links and profiles have become a prominent method of scamming.

Fraudsters set up counterfeit accounts, impersonating banks or trusted entities to lure individuals into providing login credentials or downloading malware.

Discovery Bank urges users to verify links and avoid sharing sensitive information on social platforms. “If an offer seems too good to be true, it probably is,” the bank warns.

ATM fraud, including card skimming and distraction tactics, remains a significant concern. Criminals often pose as helpful bystanders to switch cards or steal PINs.

Standard Bank advises customers to use ATMs in secure, well-lit areas and avoid accepting assistance from strangers.

Immediate reporting of lost or stolen cards is crucial to prevent unauthorised transactions.

Finally, online shopping fraud has surged alongside e-commerce growth. Fraudsters create fake websites to steal payment details or deliver substandard products.

SABRIC notes that many incidents involve “card-not-present” fraud, which accounted for over half of debit card-related scams.

Banks like Absa stress the importance of verifying website security (look for HTTPS and a padlock symbol) before entering payment details.

Fraud statistics illustrate the scale of the problem. SABRIC data reveals that South Africans lose millions annually to scams, with online banking fraud comprising a growing portion of incidents.

SIM-swap fraud alone has seen a marked increase, with the average financial loss per incident rising from R12,315 in 2020 to R17,775 in recent years.

Furthermore, phishing and vishing scams are becoming more sophisticated, leveraging personal information from social media and data breaches to deceive victims.

In response, banks are intensifying their efforts to educate customers.

Absa emphasises that security is a shared responsibility, urging individuals to double-check communications and refrain from clicking suspicious links.

Similarly, FNB has implemented advanced security features, such as two-factor authentication, to safeguard transactions.

Despite these measures, fraudsters continue to innovate, exploiting new vulnerabilities. Standard Bank advises South Africans to stay informed, regularly update passwords, and maintain scepticism toward unsolicited offers or urgent requests.

As Discovery Bank states, “Fraud prevention begins with awareness—when in doubt, verify.”

The rise in fraudulent activity underscores the importance of proactive measures.

By staying vigilant and adopting recommended safety practices, South Africans can better protect themselves against these pervasive threats in 2024.

For more detailed guidance, customers are encouraged to consult their banks directly or visit resources like SABRIC’s safety tips.

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