Sabric warns of AI-driven banking scams surge in South Africa

The South African Banking Risk Information Centre (Sabric) has issued a warning about the rapid rise of artificial intelligence (AI)-driven scams targeting South African bank customers.

The increase in sophisticated fraud schemes is becoming a significant concern, as criminals continue to exploit technology to deceive even the most cautious individuals.

In one high-profile case, a South African investor was misled into parting with more than R6m after being duped by fraudsters posing as bank employees.

Digital banking crime manager at Sabric, Ntshiki Maluleka, said these criminals used a fake app and manipulated digital communication channels to gain the victim's trust and orchestrate the fraudulent transactions, all under the guise of trading on the Johannesburg Stock Exchange (JSE).

Maluleka described a similar case where an individual lost more than R100,000 to a fraudulent broker.

Scammers created a professional-looking website and used social engineering tactics to convince the victim to make significant investments with a fake broker.

“The victim lost all his money,” said Maluleka.

Maluleka said these scams were particularly dangerous because they felt incredibly real.

“Imagine receiving a WhatsApp message that looks exactly like it’s from your bank. The logo is correct, the wording is professional, and the person on the other end claims to be a bank official offering a lucrative investment deal. They even send a convincing link to download an app,” he said. 

Sabric's annual crime statistics report for 2023 highlighted that fraud via banking apps has become the dominant threat, accounting for 60% of all digital banking crimes, marking an 89% year-on-year increase.

“Card fraud remains a major issue, particularly in online transactions. Card Not Present (CNP) fraud, which occurs during online purchases, made up 68% of gross fraud losses and saw an increase of 19% from the previous year,” Sabric reported.

Another troubling trend was the rise in robbery incidents linked to banking crimes, with an 85% increase in such cases, especially within bank branches. Though ATM attacks saw a slight decrease of 9%, criminals continued to bypass security measures and steal money from ATMs, even managing to remove stained cash, despite dye-stain security protocols being triggered.

A recent warning from Standard Bank highlighted a fraudulent WhatsApp group promoting a fake investment app called SBG SI Trader, which was designed to steal personal data and money from unsuspecting victims.

Maluleka noted that scammers were not only creating fake banking apps but also impersonating bank officials on social media, posting fake reviews and endorsements and generating fraudulent news articles to trick potential victims.

Sabric CEO Nischal Mewalall cautioned: “AI-driven scams are now so advanced that even the most vigilant person can be fooled. Criminals can fake voices, emails and even entire apps. The only way to stay safe is to verify before you trust.”

Maluleka shared practical advice to help South Africans avoid falling victim to these scams.

“If it sounds too good to be true, it probably is,” he warned. “Be wary of offers promising ‘guaranteed’ financial returns. Never download apps from links sent via WhatsApp, SMS, or e-mail. Always use official app stores. Verify before you trust. If someone claims to be from your bank, hang up and call the official number,” he said. 

Maluleka also stressed that banks will never ask for your PIN, one time PIN, or banking passwords.

“CEOs don’t sell or promote investments to the public. Report suspicious activity immediately. If you suspect fraud, contact your bank and report it,” he said.

“These scams are not just targeting a few people; they’re affecting everyday South Africans, draining life savings and eroding trust in digital banking,” said Maluleka.

He encouraged individuals to spread awareness: “Talk to your parents, colleagues and friends. Share this message. The more we expose these scams, the less successful they become.”

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