Protect yourself: Ombud warns of 73% rise in virtual banking fraud in South Africa
Image: File
The National Financial Ombud (NFO) has warned that while virtual banking cards offer enhanced convenience and security, they are increasingly being exploited by fraudsters.
According to the NFO, digital banking fraud complaints have surged by a staggering 73% year-on-year, rising from 1,436 cases between January and May 2024 to 2,483 during the same period in 2025.
The increase is being driven by fraudsters who exploit phishing scams, and other deceptive tactics to gain access to consumers' digital banking profiles and create virtual cards to drain their accounts.
The watchdog also added that "in contrast, ATM card complaints rose from 237 to 332, but remained lower in number than virtual or digital fraud cases. Between January 2024 and May 2025, digital fraud complaints exceeded ATM fraud complaints by 3,350 cases, marking a dramatic shift in card fraud from plastic to virtual".
Nerosha Maseti, the Lead Ombud for Banking and Credit at the NFO, warned that "while virtual cards offer enhanced convenience and security, they are not immune to fraud".
Maseti added that the NFO's "investigations reveal that virtual cards are typically compromised through unauthorised access to a customer's banking app".
'Fraudsters are able to create virtual cards and then use the virtual card credentials to perform transactions once gaining access to a customer's digital banking profile,". Maseti said.
"This happens when bank customers have compromised their confidential access credentials, shared One Time Pins (OTPs) or accepted authentication messages for the creation ofvirtual cards".
She added that this was happening despite awareness campaigns by banks.
"The majority of complainants to our office indicated that they were unaware of the existence or use of virtual cards,' she said.
Maseti pointed to a recent case where a consumer lost R500,000 after falling victim to a vishing scam, in which fraudsters posing as bank officials convinced her to share her online banking credentials. The scammers accessed her profile, created multiple virtual cards, and authorised purchases using in-app approvals on her mobile device.
The bank rejected her refund request, arguing that the transactions were authenticated through her app using valid credentials. The NFO upheld the bank's stance, finding no evidence of system failure or negligence.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
4 hours ago
- IOL News
Possible arrest of police commissioner Masemola could be a house of cards for the SAPS
Experts say more police officials are likely to be arrested and suspended with police commissioner Fannie Masemola. Image: GCIS Many police officials are likely to face the music and be suspended if police commissioner Fannie Masemola was to be arrested, according to crime analysts. This comes in the wake of allegations that the Investigating Directorate Against Corruption (IDAC) obtained a warrant of arrest against Masemola. The alleged arrest was related to abuse of slush funds from the secret service account of crime intelligence. It has been alleged that Masemola conspired with Lieutenant-General Duminsa Khumalo, head of crime intelligence, to purchase properties without adhering to proper procedures. This involves the purchase of the Veroz Boutique Hotel in Pretoria North and Kyalami Lodge in Midrand. Veroz Boutique Hotel, which has 23 bedrooms and a presidential suite, is valued at R43,400,000 and Kyalami Lodge, with 75 bedrooms and ensuite bathrooms, is valued at R48,250,000. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Both properties were acquired in September last year and were allegedly approved by Khumalo, who was arrested for fraud and corruption related to the purchase of a boutique hotel in Pretoria North and a commercial building in Durban. The properties were valued at R22.7 million and R22.8m, respectively. Sources said that President Cyril Ramaphosa was briefed and has given the go ahead for the arrest. Crime expert and violence monitor, Mary de Haas, said the arrest, if it happened, would mean more officials could be suspended and arrested. De Haas said this could even expose why Khumalo and his co-accused have not been suspended. 'There are many interesting things to watch out for here. Khumalo and Major-General Philani Lushaba (the chief financial officer), have not been suspended. It will be interesting to see what happens to them,' she said. The allegations came after EFF leader Julius Malema last month told journalists that a warrant of arrest was issued against Masemola but a press briefing held by the KZN police commissioner, Lieutenant-General Nhlanhla Mkhwanazi, who blew the whistle about infiltration within law enforcement, caused the postponement of the alleged arrest. Malema said Masemola conspired with Khumalo to purchase the properties in Pretoria and Durban. 'There are a lot of imponderables here,' De Haas said. Yesterday, Masemola said he was not aware of the warrant of arrest, adding that questions should be referred to IDAC. Police spokesperson Athlenda Mathe also said the matter should be discussed with IDAC. An IDAC spokesperson said on Saturday that the directorate cannot comment on WhatsApp messages or discuss investigations. Meanwhile, political analyst Zakhele Ndlovu said the arrest will prove Mkhwanazi's claims that all is not well in the SAPS and a broader criminal justice system. 'If one were to stretch one's imagination, the rot permeates the entire institution of the SAPS and other institutions within the criminal justice system, and I dare say the broader state institutions. "Factionalism and political interference are real within the SAPS as is the case with the ruling party. It is an open secret that the powers that be in the SAPS are friends with gangsters. South Africa is a crime scene and even the commander in chief has a cloud hanging over his head with regard to the Phala Phala saga,' Ndlovu said. Another political analyst, Professor Sipho Seepe, said the speculation should be viewed within the context of Mkhwanazi's claims, implicating the entire criminal justice system in the act of possible corruption. 'Should the speculation regarding the imminent arrest of the National Commissioner prove to be true, they will send an unequivocal message that no one is above the law. This will be the case if this is not another ploy to remove individuals considered inconvenient by the establishment, 'he said.
The Star
5 hours ago
- The Star
Police offer R300 000 reward for information on the brutal killings of three officers
Jabulani Moyo is alleged to have killed two police detectives in Roodepoort on Friday, August 8. Jabulani Moyo is alleged to have killed two police detectives in Roodepoort on Friday, August 8. This follows the brutal killings of Warrant Officer Vuyisile Sintwa and Sergeant Simon Masenya from the Johannesburg Trio Task Team, who were ambushed on August 8 while escorting awaiting-trial prisoner Jabulani Moyo from Roodepoort Magistrate's Court back to prison. The South African Police Service (SAPS) has announced two separate cash rewards of R150,000 each for information leading to the arrest of suspects responsible for the brutal killings of three police officers in two separate shootings over the weekend. The SAPS seeks help after the tragic murders of three officers in separate incidents over the weekend, underscoring rising violence against law enforcement in South Africa. National Police Commissioner General Fannie Masemola. National Police Commissioner General Fannie Masemola stated that the Hawks are leading the investigation, relying on witness testimonies and evidence collected at the filling station near Roodepoort Magistrate's Court where the shootings occurred. He added that questions have been raised about whether the awaiting-trial prisoner was handcuffed at the time. 'It is standard procedure that all awaiting trial prisoners must be appropriately restrained and placed at the back of a van. On whether Moyo was handcuffed or not and why members were travelling in a sedan, all these questions are under investigation.' On August 9, Sergeant Lawrence Mtshweni of Schoemansdal SAPS in Mpumalanga was fatally shot while responding to a burglary near Komatipoort. Police are currently searching for 10 suspects believed to be involved. Masemola paid a visit to the families of the fallen officers to express his condolences and provide support. He denounced the killings as a blatant assault on state authority and the rule of law. Masemola disclosed that 27 police officers were killed by criminals in the last financial year, with six officers already losing their lives in the line of duty since April 1, 2025. 'These are not just numbers; they were mothers and fathers who have left families behind to fend for themselves. Most of them were breadwinners in their households, but most importantly, they were members who dedicated and laid down their lives in the line of duty by ensuring that all people living in South Africa are safe and protected from callous criminals,' he said. Masemola also strongly urged all police officers across the country to be vigilant and not risk their lives while using the tools and resources provided to them. 'I am making this call again to all police officers in the country, do not die with the tools and resources that we have given you. The men and women in blue must act appropriately when circumstances allow them to act. Remember to always use force that is proportional to the threat. I plead with you, do not let your guard down, always be a step ahead of these criminals to ensure the safety and security of the people of this country,' he added. The Star [email protected]
eNCA
5 hours ago
- eNCA
Police minister confident that cop killer will be apprehended
JOHANNESBURG - Acting Police Minister Firoz Cachalia, says officers are working around the clock to find the suspect responsible for killing two police officers. The police are offering a R150,000 reward for information on the whereabouts of Jabulani Moyo, an awaiting trial prisoner who shot and killed two detectives on Friday in Roodepoort. READ: R150,000 reward for information on Jabulani Moyo's whereabouts Moyo was appearing on charges of armed business robbery. Police confirm that Moyo was able to escape using a police vehicle, which was later found abandoned. He also managed to steal the deceased's firearms before escaping.
