Scammers exploit trust as banking app fraud surges in South Africa

Banking app fraud is rising in South Africa, with scammers increasingly exploiting trust to manipulate victims into handing over their financial details.

Multiple banks in South Africa have alerted their clients about a rise in banking app fraud, MyBroadband reported on 14 March 2025.

Several major banks have issued warnings to clients about the latest tactics fraudsters use and how to stay protected.

Manipulating Trust: How Scammers Gain Access

According to a report by MyBroadband on 14 March 2025, criminals are preying on unsuspecting clients by impersonating bank officials. The widespread use of mobile banking apps has made them a prime target for fraudsters.

Ulrich Janse van Rensburg, Chief Fraud Strategy and Analytics Officer at ABSA, highlighted how fraudsters deceive clients into approving fraudulent transactions.

“Most of the mobile app fraud is driven by customers being instructed by criminals impersonating bank officials to move funds to a safe account or to approve transactions,” he explained.

Common Scams to Watch Out For

Banks have reported various fraud tactics, with Capitec identifying coercion as a major issue. Clients are often pressured into initiating payments under false pretenses. Other widespread scams include:

• Phishing and vishing scams – Fraudsters call or email victims, pretending to be from the bank and requesting confidential details.
• Remote access malware – Scammers trick victims into installing software that grants them access to banking apps.
• Social engineering – Criminals manipulate customers into providing One Time Pins (OTPs) or login credentials, allowing unauthorized transactions.

Standard Bank’s Head of Fraud Risk Management, Advocate Athaly Khan, emphasized how fraudsters now convince customers to unwittingly facilitate their own losses.

“Through manipulation and deception, we are now seeing fraudsters employ the aid of customers to facilitate payments or unknowingly grant access to their banking app,” Khan said.

How to Protect Yourself

South African banks have outlined key steps to help customers safeguard their accounts:

• Read all bank messages carefully before taking action.
• Use the bank’s account verification services before making payments.
• Never click on links in unsolicited messages requesting banking or personal information.
• Avoid processing transactions if prompted by someone claiming to be from your bank.
• Ensure your browser, banking app, and security software are up to date.
• Report lost or stolen devices and cards immediately.
• Avoid using public Wi-Fi for mobile banking.
• Never share sensitive details such as passwords, OTPs, or login credentials.
• Be wary of job, prize, or loan offers that require upfront payments.
• Download banking apps only from trusted sources.
• Research investment opportunities thoroughly and be cautious of offers that seem too good to be true.

With scammers continuously refining their tactics, vigilance is key to preventing fraud. Banks urge customers to remain cautious and report any suspicious activity immediately. By staying informed and proactive, South Africans can reduce the risk of falling victim to these increasingly sophisticated scams.