This week’s OSIN showcases the Annual Crime Statistics of South Africa published by the South African Banking Risk Information Center (SABRIC)

We covered the statistics involving Digital Crime, Applications Fraud and Card Fraud. In 2022, digital banking fraud surged by 24%, driven by a rise in fraud cases related to banking applications and internet banking. Cybercriminals employed social engineering techniques, including phishing and pretexting, to deceive users. They also enlisted intermediaries or “mules” through online ads or phishing, who opened bank accounts for illegal activities. Money laundering involves complex transactions, cryptocurrency use, and online platforms to disguise funds’ origins. 

Fraudulent home/mortgage loan applications increased by 8%, with 14% success, resulting in significant legal expenses for banks. Unsecured frauds decreased by 5.6%, but actual losses rose by 7.6%. Notably, 78% of reported 2022 applications were flagged as fraudulent and declined, showcasing digital banking fraud’s growing threat and financial impact. 

South Africa saw an 18.4% decrease in gross fraud losses for cards, totalling ZAR960.6m. Debit cards remained most affected, despite the overall decline. Phishing and OTP vishing scams were prevalent methods for obtaining sensitive bank details. 

The potential losses in various fraud categories underscored the financial industry’s need for robust prevention and security measures.

Click here to get the full report.