South Africa is witnessing an increase in artificial intelligence (AI)-based fraud schemes, and the threat is set to continue.
This is according to the South African Banking Risk Information Centre (SABRIC), which today released its Annual Crime Statistics for 2024.
The report reflects a significant decline in financial crime losses, but also warns of the growing threat posed by AI in fraud schemes.
According to SABRIC, in 2023, South Africa recorded financial crime losses amounting to R3.3 billion. It notes that this figure dropped to R2.7 billion in 2024, representing a reduction of almost 18%.
SABRIC attributes this improvement to the strengthened prevention and detection measures introduced by the banking industry.
Despite this progress, it warns that criminals have adapted to changing conditions.
It states that fraudsters are increasingly exploiting AI tools to carry out scams. SABRIC CEO Andre Wentzel says: “Criminals are leveraging AI to create scams that appear more legitimate and 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.”
The 2024 statistics highlight that digital banking fraud remained the most dominant channel, accounting for 65.3% of reported incidents.
Cases almost doubled in volume, rising from 31 612 in 2023, to 64 000 in 2024, while losses increased from R1 billion to over 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%, resulting in a 44% reduction in cash losses.
Associated robberies fell by 35%, with losses to clients down 64% − 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% of gross fraud losses on South African-issued credit cards. Lost and stolen cards accounted for 8.2%, while false applications contributed 2.9%.
The organisation says counterfeit card fraud also remained a concern, with 64.4% of counterfeit credit card fraud and 63.1% 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.”
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