Several of South Africa’s largest financial institutions are sounding the alarm over a growing wave of scams targeting their customers, as fraudsters deploy increasingly clever tactics to steal money and personal data.

Major players such as Capitec, Discovery Bank, Nedbank, and Standard Bank have all issued alerts to their clients, with the Banking Association of South Africa (BASA) also releasing a general advisory about the rising threat.

Beyond the usual phishing scams, banks are now warning about newer forms of fraud, including selfie-based schemes and attacks involving physical bank cards.

New Twist: Selfie scams on the rise

Nedbank reported in April 2025 that it has noticed an uptick in what it calls “selfie scams,” a method where criminals manipulate victims into granting them access to their banking apps.

Lucas Venter, who leads Nedbank’s fraud detection team, explained that scammers typically approach individuals in public, offering them a fake promotional voucher. They convince the person to sign up for a fictitious loyalty program using facial recognition — all on the fraudster’s phone.

“The unsuspecting victim believes they’re signing up for a legitimate reward, but they’re actually registering their biometrics into a banking app controlled by the scammer,” said Venter.

Often, the criminal then persuades the victim to use their own device to approve transactions or generate a one-time PIN, giving the scammer access to their bank account.

Venter urged the public to take precautions:

• Always verify any in-store promotions with the business directly.
• Never allow strangers to conduct biometric verification on your behalf.
• Avoid handing your phone to unfamiliar individuals.
• Read all banking notifications thoroughly before responding.
• Contact your bank immediately if you suspect fraudulent activity.

Social Engineering: The new frontline in fraud

Traditional phishing and vishing (voice phishing) schemes are also evolving, with scammers becoming more convincing and manipulative. Often, they pretend to be bank officials warning of compromised accounts, pressuring customers to move their money into supposed “safe” accounts — which, in reality, belong to the fraudsters.

Some scammers pose as government authorities or representatives of trusted institutions to trick people into revealing confidential information. Capitec recently flagged a scam in which criminals pretend to be from respected organizations, falsely claiming that a person’s ID is tied to criminal activity.

Once trust is gained, the victim is “transferred” to a bogus police officer who continues the deception, extracting sensitive details under the guise of a formal investigation.

Capitec stressed that customers should never share PINs or account details — even if the caller claims to be from the police.

Discovery Bank has also noted a rise in fraudsters impersonating police detectives. These scammers tell targets that their ID number is linked to illegal bank accounts used for money laundering. Victims are urged to disclose their account balances and transfer funds to a so-called SAPS account for “safekeeping.”

“These fraudsters rely on fear tactics and threats of arrest to coerce victims into compliance,” Discovery Bank stated, urging people to stay calm and skeptical.

Card fraud still a major concern

BASA has further cautioned the public about fraud involving physical bank cards. Criminals continue to adapt their methods, making it difficult for banks to stay ahead of card-related crimes.

To reduce the risk, banks are promoting the use of digital wallets and virtual cards as safer alternatives to traditional plastic cards.

Common schemes include:

• Counterfeit cards created using stolen data from legitimate cards.
• Fraudulent use of lost, stolen, or expired cards rewritten with valid data.
• Applications made using stolen personal information to obtain new cards.
• Skimming devices used to copy card data without the victim's knowledge.
• Interception of newly issued cards before they reach the rightful customer.

To reduce exposure, customers are advised to set transaction limits requiring a PIN and to monitor their accounts closely.

Although some scams persist, there has been progress. According to BASA, the introduction of the Financial Intelligence Centre Act (FICA) and the National Credit Act (NCA) has helped significantly curb fake application fraud. Incidents in this category have dropped by more than 90% since peaking in 2007–2008.

Nonetheless, the association warns that fraudsters continue refining their tactics, and vigilance remains the best defense for banking customers.

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