A new report has highlighted the rapid increase in banking app fraud in South Africa as more financial services move onto mobile devices.<\/p>\n\n\n\n
The 2025 KnowBe4 African Cybersecurity & Awareness Report highlights the need for South Africans to exercise caution when using banking apps on their smartphones. <\/p>\n\n\n\n
The report, based on a survey conducted in September 2024, polled hundreds of adults aged 30 to 60 across several African countries, including South Africa. <\/p>\n\n\n\n
Respondents were employed in diverse sectors such as financial services, government, healthcare, real estate, and telecommunications, offering insights into cybersecurity awareness and digital habits.<\/p>\n\n\n\n
Mobile financial service usage has surged, with 95% of respondents using either mobile payments, mobile banking, or both. <\/p>\n\n\n\n
Notably, South Africa recorded a higher-than-average mobile banking usage rate of 50%, compared to the continental average of 36%. <\/p>\n\n\n\n
This rise in digital financial activity, however, has expanded the attack surface for cybercriminals.<\/p>\n\n\n\n
Smartphones and tablets are often used more casually than traditional computers, exposing users to greater risks due to less stringent security practices.<\/p>\n\n\n\n
The proliferation of mobile transactions has coincided with an increase in cyber threats. <\/p>\n\n\n\n
Many users conduct financial transactions on unsecured or secondhand devices, further escalating the risk of cybercrime. <\/p>\n\n\n\n
Compounding the issue is the alarming rate of cellphone theft in South Africa, where an average of 189 phones are stolen daily, predominantly targeting women. <\/p>\n\n\n\n
Stolen devices can grant criminals direct access to sensitive data, including banking apps and personal information.<\/p>\n\n\n\n
Between April 2017 and March 2023, the South African Police Service (SAPS) reported 412,998 stolen mobile phones, with only 29% blacklisted by service providers. <\/p>\n\n\n\n
Gauteng accounted for the highest percentage of thefts (29%), followed by the Western Cape (26%), KwaZulu-Natal (20%), and the Eastern Cape (7%). <\/p>\n\n\n\n
These thefts occur in various settings\u2014from snatch-and-grab incidents in public places to violent crimes like armed robberies.<\/p>\n\n\n\n
The South African Banking Risk Information Centre (SABRIC) has warned that stolen phones are often targeted for the valuable data they contain. <\/p>\n\n\n\n
Criminals seek access to banking apps, delivery services, and other personal information, such as identification documents, bank statements, and proof of residence. <\/p>\n\n\n\n
Full access to victims’ emails and SIM cards further amplifies the potential for fraud.<\/p>\n\n\n\n
Emerging threats include \u201cfraud-as-a-service\u201d platforms, which provide cybercriminals with the necessary tools and resources to execute and scale fraudulent activities. Additionally, there is a growing convergence of physical and digital crime, with incidents where victims are coerced or kidnapped to forcibly access their banking applications.<\/p>\n\n\n\n
A survey of 29 banking fraud professionals from nine of South Africa’s top banks identified the most concerning types of fraud: APP fraud and vishing (52%), phishing and smishing (48%), and SIM swap fraud (35%). <\/p>\n\n\n\n
The Southern African Fraud Prevention Services (SAFPS) has also noted a rise in mobile phone thefts specifically aimed at exploiting banking apps.<\/p>\n\n\n\n
In light of these threats, the SAFPS advises that if a phone is stolen, the first priority should be contacting your bank to de-link your banking app from your accounts immediately. <\/p>\n\n\n\n
Only after securing your financial information should you contact your mobile service provider to cancel the SIM card. <\/p>\n\n\n\n
This sequence is crucial to minimizing the risk of unauthorised access to your financial data.<\/p>\n\n\n\n
As mobile banking becomes increasingly integrated into daily life, maintaining strong security practices is essential. <\/p>\n\n\n\n
Users are encouraged to set strong passwords, enable two-factor authentication, regularly update their apps and devices, and remain vigilant against suspicious activities. <\/p>\n\n\n\n
Awareness and prompt action can significantly reduce the risk of falling victim to cybercrime in an era where digital and physical threats are increasingly intertwined.<\/p>\n\n\n\n
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