Standard Bank warning to South Africans with bank accounts

Standard Bank has flagged the recent tactics used by criminals to gain access to your bank accounts. The most common at the moment include fake non-compliance notifications and extortion scams. 

The bank told BusinessTech there has been a significant rise in extortion, email, and text scams (phishing) targeting banking customers, resulting in considerable financial and emotional distress for thousands in recent months.

It has issued a strong warning to its customers following a surge in cybercrime cases. Its Head of Fraud Risk Management, Athaly Khan, highlighted a concerning rise in phishing scams and extortion attempts that are catching many off guard.

According to Khan, fraudsters are becoming more brazen and strategic in their attacks. “We’ve seen a significant increase in email and text message scams, many of which appear alarmingly convincing,” she said. 

“These are not random attempts; these criminals often have detailed personal information and use it to pressure victims into compliance.”

The latest data from the South African Banking Risk Information Centre (SABRIC) paint a concerning picture of the size of the problem. 

According to SABRIC, digital banking fraud has jumped by 45%, while financial losses tied to these scams have increased by 47%. 

Mobile banking apps, in particular, have become a primary target, now accounting for 60% of digital banking crime. Alarmingly, fraud via banking apps has soared by 89% over the past year.

SABRIC reports that South Africans lost nearly R3.3 billion to financial crime in the past year, with a significant portion of that stemming from digital and card fraud. 

These schemes not only drain bank accounts but leave victims emotionally shaken and often too embarrassed to report the crime.

Khan said fraudsters manipulate customers by exploiting the financial sector’s compliance obligations, such as FICA regulations. 

“There has been a rise in fake non-compliance notifications, with criminals impersonating banks through emails and SMS messages,” she explained.  

“These messages often threaten account blockage unless customers click a link to update their information.” 

Once the victim clicks on the link, they’re taken to a fraudulent site that prompts them to enter sensitive details like card numbers, expiry dates, CVVs, and even one-time PINs.

In some cases, malware is installed on their device, giving the fraudster complete remote access.

Pause, verify, and never act impulsively

Khan added that extortion scams are another worrying trend. These involve criminals posing as representatives from reputable institutions such as the Reserve Bank (SARB), SARS, or the police. 

“They claim to be investigating the customer for serious offences, fraud, money laundering, tax evasion, and demand cooperation under threat of arrest or reputational damage,” said Khan.

Standard Bank said victims are sometimes pressured to transfer money into a ‘safe’ account for the duration of a supposed investigation. 

In other cases, fraudsters claim to have compromising material, such as private photos or financial information, and threaten to expose it unless a ransom is paid.

These criminals go to incredible lengths to appear legitimate. They send emails, make convincing phone calls, and even provide documents. 

“There have been instances where they proposed in-person meetings to reinforce their cover,” Khan added.

“The internet is a powerful tool for these fraudsters, especially when people overshare on social media. Every bit of information makes it easier for scammers to tailor their attacks.”

For those who suspect they’ve been targeted, Khan stresses the importance of staying calm. 

She advised targeted customers not to panic, adding that fraudsters rely on fear and urgency to manipulate victims. “Pause, verify, and never act impulsively,” she said. 

Standard Bank urged customers to avoid clicking on unsolicited links or sharing personal details in response to suspicious messages. 

“Legitimate institutions will never ask for sensitive information or payments this way. If there’s any doubt, customers should contact their bank’s fraud department to secure their accounts,” the bank said. 

Regularly monitoring bank and credit card statements can also help catch suspicious activity early. 

“Being proactive and informed is your best defence,” Khan said. “Enable all the available security features on your banking app and educate yourself about emerging threats.”