South Africa is facing a sharp rise in AI-powered fraud schemes, even as overall financial crime losses declined by 18% in 2024, according to the South African Banking Risk Information Centre (SABRIC), which released its Annual Crime Statistics Report on Tuesday.

SABRIC reported that financial crime losses dropped from R3.3 billion in 2023 to R2.7 billion in 2024, crediting stronger banking sector prevention measures and detection technologies for the improvement. However, it warned that criminals are evolving rapidly, using generative AI tools to create scams that are more convincing, targeted, and difficult to detect.

AI Takes Fraud to the Next Level

SABRIC CEO Andre Wentzel said fraudsters are using AI to create error-free phishing emails, cloned WhatsApp messages, and even voice-based deepfakes impersonating banking officials.

“Criminals are leveraging AI to create scams that appear more legitimate and convincing,” Wentzel said. “From AI-written phishing emails to deepfake voice calls, these tactics demand proactive and collaborative strategies to protect consumers.”

The report warns that by 2025, real-time deepfake audio and video scams could become widespread, posing a major risk to consumers and financial institutions.

Digital Banking Fraud Surges

While total financial losses decreased, digital banking fraud surged, becoming the dominant fraud channel:

65.3% of reported incidents in 2024 involved digital banking.
Cases more than doubled, rising from 31,612 in 2023 to 64,000 in 2024.
Losses increased from R1 billion to over R1.4 billion.

SABRIC attributes this growth to social engineering techniques — scams designed to exploit human error rather than technical breaches of banking platforms.

Other Financial Crime Trends

The report highlighted several positive developments alongside the AI-driven challenges:

ATM attacks declined 18%, driving a 44% drop in cash losses.
Associated robberies fell 35%, with client losses down 64%.
Card-related fraud remains a concern:
- Card-not-present transactions accounted for 85.6% of gross credit card fraud losses.
- Lost and stolen cards made up 8.2% of losses.
- False applications contributed 2.9%.
Counterfeit card fraud persists, with 64.4% of credit card fraud and 63.1% of debit card fraud occurring domestically, especially at toll plazas and service stations.

Industry Response and Consumer Protection

SABRIC reaffirmed its commitment to enhancing consumer education, strengthening industry-wide collaboration, and investing in new security technologies to protect the financial sector.

“Protecting the financial system requires constant vigilance and cooperation between banks, regulators, law enforcement, and civil society,” Wentzel said. “Together, we can stay ahead of an ever-changing criminal landscape.”