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South African Banking App Fraud Surges to R1.7 Billion in 2025 - News Directory 3

South African Banking App Fraud Surges to R1.7 Billion in 2025

September 10, 2026 Victoria Sterling Business
News Context
At a glance
  • According to a report by the South African Banking Risk Information Centre (SABRIC), banking apps have become the primary channel for digital banking crime in South Africa, accounting...
  • SABRIC data shows that banking app-related crimes represented about 89% of all reported digital banking crime cases and 70.5% of the total claim amount in 2025.
  • Despite the heavy losses tied to mobile software, SABRIC emphasized that the figures do not mean banking applications or bank systems were actually compromised by hackers.
Original source: iol.co.za

According to a report by the South African Banking Risk Information Centre (SABRIC), banking apps have become the primary channel for digital banking crime in South Africa, accounting for R1.7 billion in reported client losses during 2025. SABRIC recorded 110,074 total digital banking crime incidents that year, with overall client claims reaching R2.41 billion, marking a 29.2% increase from 2024.

Digital Banking Crime Figures and Banking App Losses

SABRIC data shows that banking app-related crimes represented about 89% of all reported digital banking crime cases and 70.5% of the total claim amount in 2025. The total financial exposure through apps reached R1.70 billion out of the aggregate R2.41 billion in gross claims reported for the year. Compared to prior periods, digital crime incidents have climbed steadily. SABRIC tracked 52,588 incidents in 2023, which jumped to 97,547 incidents in 2024 before reaching 110,074 incidents in 2025. The average loss per incident stood at R21,865 last year, shifting from R19,095 in 2024 and R20,649 in 2023.

How Fraudsters Target Banking App Users Without Hacking Bank Systems

Despite the heavy losses tied to mobile software, SABRIC emphasized that the figures do not mean banking applications or bank systems were actually compromised by hackers. Instead, criminals typically initiate the fraud outside the banking platform by impersonating trusted organizations, manufacturing false urgency, or guiding customers through transactions in real time. The banking application is used to add beneficiaries, approve payments or move funds after the customer had been deceived, SABRIC noted in its findings. Vishing, or voice-phishing, remains a prominent tactic. Fraudsters pose as banks, government agencies, or other trusted entities, convincing victims that their accounts face immediate danger. Victims are then coaxed into moving funds to a supposed safe account while criminals stay on the line to give step-by-step instructions. Transactions often happen in rapid succession, leaving little window to halt the transfers.

Remote Access Scams and Emerging Artificial Intelligence Threats

Remote-access scams present another major vector, where victims are tricked into installing software or granting screen-sharing access under the guise of technical support or fraud prevention. SABRIC stated that once device control is secured, funds are typically drained through a single decisive transaction to a newly created beneficiary. The risk landscape is further complicated by artificial intelligence. SABRIC warned that criminals are leveraging AI to craft more convincing phishing messages, realistic images, and believable voice recordings, including isolated cases involving cloned voices.

Internet Banking and Card Fraud Exposure

While banking apps dominate case volumes, other banking channels carry distinct risk profiles. Internet banking accounted for fewer than 9% of cases—about 9,354 investigations—but represented roughly 28.6% of the total claim value at R688.3 million, demonstrating that a smaller volume of internet banking attacks still yields substantial financial exposure. Mobile banking via USSD and cellphone channels accounted for 3,165 investigations and R22 million in claims. Beyond digital banking channels, broader payment fraud also expanded. SABRIC reported that combined gross losses on South African-issued credit and debit cards increased by 18% year-on-year, rising from R1.48 billion in 2024 to R1.75 billion in 2025. Credit-card losses climbed 29.3% to R739.2 million, while debit-card losses grew 10.9% to R1.01 billion.

South African Banking App Fraud Surges to R1.7 Billion in 2025
Photo: themercury.co.za
The Human Compromise: Inside South Africa’s R2.4 billion digital fraud epidemic

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