As South Africans take advantage of the ease and convenience of the digital financial world, it has become increasingly more simple for threat actors to take advantage. Deceiving the average individual has become rather simple for cybercriminals as the internet brings them a wealth of information. All it takes is one or two rather official looking emails or texts and a simple “click” can end up devastating personal finances for good.
The use of mobile phones as a main access point has given digital criminals the ability to target unsuspecting individuals. This is especially important as more make use of public internet where threat actors can easily hack in and monitor their use.
These criminals make use of very sophisticated tools, designing their attacks when people are the busiest or potentially distracted. Holiday times make people particularly vulnerable as they focus on other plans, people and family. Phising has been one of their most successful stunts as these threat actors have cloned websites, created email addresses with slight alterations and even produced almost perfect branding to fool everyone. One of the latest tools they have started using is “deepfake” technologies where they can imitate voices which can trigger approval from the automated trust systems.
The increased popularity of crypto-based financial transactions has opened the doors for the kind of theft that can’t be traced. One only has to look at the scandal involving Mirror Trading International that lost investors over R8bn.
One of the major problems has been the speed of technology versus the methods of fighting fraud. There is inconsistency in the AML (anti-money laundering) controls over the various institutions of finance. Those banks that have invested in detection and reporting that is AI-powered have seen success in battling the criminals. However, there remains banking institutions that have lagged behind, thereby allowing inadequate monitoring and reporting where cybercriminals flourish.
Another problem has been the resistance of South Africans to report a breach. The reasons vary from embarrassment to lack of confidence that any action will be taken. In the 2024-2025 period, reports of cyber fraud dropped to 65.1%. There may be some validity in the reasoning behind reduced reporting. In a survey, 57% of those questioned that did make a report received no follow up as to results or actions. This kind of condition will erode any faith that individuals may have in “the system.”
Some of the proactive actions that consumers can take include the priority of remaining vigilant. While not sharing any confidential information is a no-brainer, other actions can include: disconnect any unsolicited phone calls, only download apps from official sites, be sceptical about any “investment promises” that are offered.
Financial institutions will not allow the continued loss they have experienced due to digital financial theft. It will ultimately be a partnered effort between banks and consumers to work together. Multi-factor authentication must be offered by financial institutions and agreed for use by consumers. Additional technology must be added by institutions and report progress and actions must be put in place.
“Protecting consumers from digital theft is one of the priorities of DaVinci Cybersecurity. We maintain the latest information on the various methods threat actors use and share to advise and counsel to protect personal data.”
– Sharon Knowles, CEO DaVinci Cybersecurity
Source:
https://fintech.global/2025/12/05/why-south-africans-face-rising-digital-fraud-threats
