Banking app fraud on the rise in SA – Tips to stay safe

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Several banking institutions in South Africa have warned their clients of the surge in banking app fraud, reported MyBroadband on 14 March 2025.

The banks shared some of the recent scams to look out for on banking apps and how to avoid falling victim. Here’s all you need to know.

BANKING APP FRAUD ON THE RISE

According to the report by MyBroadband, smartphones have become targets for scammers trying to access people’s banking apps. Hence, there has been an increase in reported banking app fraud incidents among clients in prominent banks in the country.

Ulrich Janse van Rensburg, Chief Fraud Strategy and Analytics Officer at ABSA, said increased banking app use is a huge contributing factor to this form of fraud.

“Most of the mobile app fraud is driven by customers being instructed by criminals impersonating bank officials to move funds to a safe account or to approve transactions,” Janse van Rensburg explained.

FORMS OF BANKING APP FRAUD ON THE RISE

Capitec revealed that clients being coerced to initiate payments is one of the common types of fraud it has seen on the banking app. There are other forms of this fraud financial institutions have noticed.

These include phishing over phone calls and through emails where individuals are prompted to give confidential information. Vishing has also surged, as well as accessing banking apps remotely through malware. Standard Bank’s head of fraud risk management, Advocate Athaly Khan, detailed how scammers do this.

“Another method involves tricking clients into installing malware on their devices, which then grants the criminals access to their banking information.

“Through manipulation and deception, we are now seeing fraudsters employ the aid of customers to facilitate payments or unknowingly grant access to their banking app,” said Khan.

TIPS TO AVOID FALLING VICTIM

These are some of the tips banks have provided to avoid falling victim to banking app fraud. You should:

Read messages from your bank carefully before acting and use the bank’s “account verification service” to confirm that the account you’re paying to is legit.
Don’t click on links in unsolicited messages asking for your banking or personal information.
Avoid processing transactions when asked by someone who claims to be from your bank or authorising transactions you didn’t process.
Ensure your in-app authorisation and transaction’s currency match.
Always ensure your browser and security software on your device are up to date.
Report stolen devices or cards immediately to avoid banking app fraud.
Avoid accessing your banking app using public Wi-Fi.
Don’t share sensitive information such as your password, One Time Pin (OTP) or login credentials.
Don’t pay fees for jobs, prizes or loans upfront.
Use only apps from reputable sources.
Avoid offers that are too good to be true and do thorough research on any investment opportunities.