One only has to read the daily newsfeeds to see how drastic digital financial crime is around the world. South Africa is particularly vulnerable. It’s been reported that around 70% of South Africans have been victims of some form of cybercrime as compared to the global rate of 50%. South Africa has not only maintained among the top countries that experience cyber attacks, but the numbers are increasing. Mobile cybercrime has been on the uptick as 47% of South African smartphone users have reported having mobile cybercrime. The results of the financial fraud has been enough to list South Africa as having a crime wave.
One of the top cyber threats has been on banking apps, with 60% of all digital crimes being used in this method. Cybercriminals make use of false websites and/or apps that are downloaded from a non-official source. They have become very sophisticated at copying bank apps and using phishing methods to lure consumers into using both the apps and the websites.
Data breaches are another successful method used by threat actors. From financial institutions to credit reporting agencies, cybercriminals have stolen personal and private data and make use of it to target unsuspecting consumers. Infostealer and ransomware attacks have resulted in over 40% of attacks in 2024.
The rapid increase in digital crime in South Africa has been alarming. Cybercriminals are leveraging mobile technologies and channels to move faster in digital financial fraud. These criminals know that a majority of consumers are unaware of the attacks as they believe they are making use of valid apps and websites. The results of this landscape is that banking apps have experienced an 89% year-on-year increase.
AI has now offered a new and terrifying level for mobile scams. Reports are showing that their use of Generative AI creates phishing that is more convincing, using messaging apps or SMS. These actions expose vulnerabilities in app security, social engineering tactics, and user authentication processes. This is particularly negative as South Africans make use of their mobile phones for many of their financial transactions.
CNP (Card Not Present) has been added to the wave of mobile use. Although not restricted to mobile, CNP is used in online purchases, contributing to 68% of the gross card fraud thefts. This percentage is increasing as CNP fraud is often linked to initiated or completed mobile transactions.
More recent trends that have increased include SIM swaps, which have caused a 25% surge in the past year. The average loss due to SIM swaps is estimated to be R10,000. This form of attack compromises mobile numbers so that they bypass authentication.
There is a high level requirement for business, government and consumer awareness and actions. Government laws may be set in place but the follow through has been lagging. Companies have been slow to add additional securities in place as well as very little in informing consumers. Cyber thieves are very aware of these limitations and take advantage to steal financial and personal information.
“DaVinci Cybersecurity believes that education is the highest priority. Consumers need to be empowered so that they recognise the kind of scams that sophisticated cybercriminals use. We share counseling on enabling multi-factor authentication as well as strong password use and always being suspicious of unsolicited communications and links.”
– Sharon Knowles, CEO DaVinci Cybersecurity
Source:
https://fintech.global/2025/12/05/why-south-africans-face-rising-digital-fraud-threats
