The threat to consumers of financial fraud is getting worse by the day. AI, which in the wrong hands can be used with criminal intent, is expected to compound the problem in the near future – already corporations are reporting infiltration of their systems by malicious AI agents. But even currently, before the AI revolution has really begun, regulators and financial institutions are dealing with fraud on an unprecedented scale.
Consumers are continually warned about methods used by fraudsters to access their accounts, and are made aware of steps they can take to prevent fraud, such as not opening suspicious emails or clicking on unknown links, and by having strong passwords and, where possible, opting for two-factor identification. They are also warned about scam phone calls and against divulging personal details, logins or PINs to strangers.
Recently, the National Financial Ombud Scheme (NFO) issued a warning about credit fraud, saying that fraud is no longer just about money vanishing from a bank account.
“Criminal networks are increasingly targeting everyday credit facilities, leaving consumers with debts tied to transactions they never made or authorised. Finance arrangements, from retail store and furniture accounts to cellphone contracts and non-bank personal loans, are being targeted,” says Nerosha Maseti, Lead Ombud for Banking and Credit at the NFO.
The NFO reported a 46% rise in fraud-related complaints to its Credit Division (which represents credit providers other than banks), climbing from 124 cases in 2025 to 181 in 2026.
“We are seeing the nature of credit complaints change. Consumers are increasingly approaching us about debts arising from transactions they never authorised. That is a serious consumer-protection issue,” Maseti says. “The fraudster may make the transaction, but the consequences can follow the consumer in the form of debt, collection activity and potentially adverse credit information.”
Fraudulent transactions may occur on an account opened by you, or through identity theft, whereby a fraudster steals your personal details and, using fake documents, opens an account in your name. In other words, you may be racking up debt on credit agreements you don’t know about.
Apart from the measures mentioned above, which are now imperative, there are further ways you can bolster your defences and reduce the chances of becoming a victim.
Protect your identity with SAFPS Protective Registration
Protective Registration is a free service offered by the SA Fraud Prevention Service (SAFPS) that alerts SAFPS members, such as banks and credit providers, to take extra precautions when handling your personal details. “Anyone can register to protect themselves,” says SAFPS CEO Manie van Schalkwyk. “Visit www.safps.org.za, upload your details securely, and add another barrier against fraud. It’s simple, effective, and free.”
Check your credit report with credit bureaus
In a previous article, “Why your credit score matters and how you can improve it”, Fatgie Adams, director of credit risk solutions at TransUnion Africa, said one reason to access your report regularly is to check that fraudsters have not taken out credit in your name without you knowing it. You are allowed one free report per year from each bureau.
Be very wary of email
Be extremely cautious when using email for financial transactions or for sending or receiving confidential information. This was a strong message to come from a talk on cybersecurity by Kevin Hogan, head of fraud risk at Investec Bank, at the recent Morningstar Investment Conference. “Email is the most insecure way to send information,” Hogan said, citing examples where emails had been intercepted by fraudsters and bank details changed. This is because emails are not encrypted, unlike, for example, WhatsApp messages, which are.
Hogan says you should never rely on bank account details provided in an email. “Always verify the account number before transferring money into an account, preferably with a phone call.”
Don’t ignore suspicious transactions
The NFO says it’s important not to ignore a suspicious credit transaction in the hope that it will resolve itself. “One of the worst things you can do is ignore the problem. If an unauthorised transaction appears on your account, report it immediately and keep a record of everything you do to resolve it,” Maseti says.“Do not assume that because you did not make the purchase, the problem will automatically disappear. Engage the credit provider, challenge the transaction formally and keep a written record of the dispute.”
