AI-Powered Fraud Schemes On The Rise In SA
South Africa is witnessing an increase in artificial intelligence (AI)-based fraud schemes, and the threat is set to continue.
South Africa is witnessing an increase in artificial intelligence (AI)-based fraud schemes, and the threat is set to continue.
The South African Banking Risk Information Centre (SABRIC), in its Annual Crime Statistics for 2024, revealed that while overall financial crime losses have declined, AI-powered scams are quickly becoming a serious threat.
According to the report, financial crime losses fell from $185.8 million (R3.3 billion) in 2023 to $152.1 million (R2.7 billion) in 2024, marking an almost 18 percent reduction. SABRIC credits this improvement to stronger prevention and detection measures implemented across the industry.
SABRIC attributes this improvement to the strengthened prevention and detection measures introduced by the banking industry. Yet, criminals are adapting. The report states that fraudsters are increasingly exploiting AI tools to carry out scams.
SABRIC CEO Andre Wentzel warned that fraudsters are turning to AI to make their scams more convincing.
“From error-free phishing e-mails to AI-generated WhatsApp messages and even voice-cloned deepfakes, these tactics highlight the need for proactive and collaborative strategies to protect consumers,” Wentzel said.
The 2024 statistics highlight that digital banking fraud remained the most dominant channel, accounting for 65.3 percent of reported incidents.
Cases almost doubled in volume, rising from 31,612 in 2023, to 64,000 in 2024, while losses increased from $56.3 million (R1 billion) to over $78.8 million (R1.4 billion).
SABRIC says these incidents were the result of social engineering techniques that exploited human error, rather than technical compromises of banking platforms.
AI-driven crime emerged as a growing concern, with criminals deploying machine-generated content to deceive victims, says the industry body.
It adds that reports included phishing e-mails and WhatsApp messages crafted with AI, alongside early cases of voice-based deepfake scams impersonating individuals and banking officials.
SABRIC cautions that in 2025, real-time deepfake audio and video may become a common tool in fraud schemes.
Other crime categories also showed notable trends, it states, pointing out that ATM attacks declined by 18 percent, resulting in a 44 percent reduction in cash losses. Associated robberies fell by 35 percent, with losses to clients down 64 percent − achievements attributed to the work of an industry-wide task team that has reduced ATM bombings.
Card-related fraud continued to be dominated by card not present transactions, which made up 85.6 percent of gross fraud losses on South African-issued credit cards. Lost and stolen cards accounted for 8.2 percent, while false applications contributed 2.9 percent.
The organisation says counterfeit card fraud also remained a concern, with 64.4 percent of counterfeit credit card fraud and 63.1 percent of counterfeit debit card fraud occurring domestically. Toll plazas and service stations were identified as hotspots for such incidents.
SABRIC reaffirmed it is working with its members to strengthen consumer education and awareness campaigns, expand industry-wide collaboration and invest in technology to safeguard the banking system.
“Protecting the financial sector requires constant vigilance and cooperation across banks, regulators, law enforcement, and civil society,” Wentzel adds. “Together, we can stay ahead of an ever-changing criminal landscape.”
