The South African Banking Risk Information Centre (SABRIC), released their 2023 Annual Statistic Crime Report on 21 October 2024, highlighting that the considerable spike in financial crime “has resulted in the loss of almost R3.3 billion.”
With technology advancing at a rapid speed, so are the tactics criminals are now choosing to employ. Technologies such as generative AI are some of the tools being used to perpetuate this crime. The CEO of SABRIC, Nischal Mewalal, said: “The rise in financial crime, particularly in the digital space, is a stark reminder of the evolving tactics of criminals.”
ASATA REITERATES AI’S CONTRIBUTION TO INCREASE IN FRAUD AND FINANCIAL CRIME
The Association of Southern African Travel Agents (ASATA), also reiterated SABRIC’s point on AI making criminals use advanced methods to carry out fraud, which has also affected the travel sector. The association’s CEO, Otto de Vries, responded to The South African via email and said: “With the rise of AI technology, scammers are becoming more sophisticated, creating convincing fake websites and even using AI-generated images to advertise properties that don’t exist.”
WHAT ARE THE TYPES OF FINANCIAL CRIME YOU SHOULD BE AWARE OF?
Some of the numerous types of financial crime that have seen an alarming rise are:
Card fraud
Card fraud increased 19% from the previous year, making up more than 60% of the gross losses due to fraud. Card Not Present (CNP) fraud usually takes place when you make purchases online.
Cybercrime
With cybercrime, fraud occurring on the banking app has become a huge concern. It makes up 60% of digital banking crimes and has seen a massive 89% increase year-on-year. There is also a 45% spike in digital banking fraud.
Contact crimes
SABRIC also expressed concern over the 85% increase in robberies inside bank branches. Gauteng has seen a small decrease in ATM attacks, but is still the most affected province.
Application fraud
Application fraud, which is fraudulently applying for financial products, also saw an increase. This financial crime saw a 100% surge in vehicle finance fraud was reported.
CYBERCRIME PREVENTION TIPS BY THE SAPS
The South African Police Services shared cybercrime prevention tips on their website that you can use to stay safe and avoid becoming a victim of financial crime. These include:
- Securing your devices by using software such as anti-virus or malware, activating your firewall and blocking spyware attacks.
- Using strong or complicated passwords that criminals won’t easily guess.
- Protecting your data and electronic identity by not giving out personal information and financial records online.
- Get help as soon as you find out you’re a victim of financial crime by going to report at your nearest police station.
HAVE YOU EVER BEEN A VICTIM OF FINANCIAL CRIME?
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