AI is making banking scams more convincing as digital crime claims rise to R2.4 billion

In 2025, South African banks suffered losses totaling R2.4 billion due to digital banking crimes, as reported by the South African Banking Risk Information Centre (SABRIC). Cybercriminals are increasingly employing technology and social engineering tactics to target bank customers. Of the 110,074 recorded incidents, banking app-related crimes constituted 89% of cases, accounting for 70.5% of the total claim amount.

Victims were targeted through various tactics such as impersonation, phishing, remote-access software, and false payment instructions, leading to the disclosure of sensitive information or the approval of transactions.

The report revealed that digital banking crime continued to pose the greatest threat in 2025, with losses rising to R2.4 billion, up from approximately R1.9 billion in the previous year. Banking app-related crime accounted for over 70% of reported digital banking losses. Card fraud also remained a significant concern, with losses increasing by 18% to R1.7 billion. Notably, card-not-present fraud was the primary contributor to card fraud losses, although it declined for both credit and debit cards in 2025.

Conversely, some types of banking crime saw a decrease in 2025. ATM attacks decreased by 46%, and cash losses linked to these attacks dropped by 63%. Bank robberies also saw a decline, with only two incidents reported in 2025, compared to eight in 2024.

Most digital banking crimes were linked to social engineering, where criminals manipulate individuals into disclosing information or approving transactions. They exploit trust, urgency, and real-time interaction on digital channels to persuade customers or employees to provide sensitive information, access, or authorization for transactions.

Fraud events often unfold rapidly, moving from initial contact to financial loss. Criminals frequently impersonate banks, police officers, or other trusted organizations to pressure victims into making payments or sharing sensitive data. SABRIC warned that artificial intelligence is making some scams more convincing by creating realistic messages, images, and voice recordings.