Woolworths Financial Services has cautioned its customers about a sharp increase in fraud-related crimes, warning shoppers to be extra careful as scammers adopt increasingly advanced methods.

The retailer noted that fraudsters are constantly finding new ways to trick people into revealing personal details, often by pretending to represent banks or well-known companies.

“With identity theft and card fraud on the rise, it’s easier than ever to fall victim,” Woolworths said in its latest security notice. “We’ve shared some advice to help customers safeguard their accounts.”

One of the latest tactics involves criminals contacting victims through SMS or online channels, persuading them to disclose sensitive information. Once they have enough details, the fraudsters reset login credentials and may even request verification through One Time Pins (OTPs).

“If you receive an OTP without requesting one, don’t approve it,” the company warned. “Doing so gives fraudsters access to your account.”

Other schemes include phishing emails, “smishing” via SMS, and direct phone calls. In some cases, criminals pose as fraud specialists and try to convince victims to download remote access software, giving them control over devices.

“Never share your PIN or OTP, and don’t allow anyone remote access to your phone or computer,” Woolworths stressed.

Escalating nationwide crisis

Woolworths’ warning follows similar alerts from major banks as South Africa faces what experts describe as an escalating fraud epidemic.

Figures from the South African Banking Risk Information Centre (SABRIC) show digital crime has risen dramatically. In its 2024 Annual Crime Statistics, SABRIC reported an 86% jump in digital banking incidents, with cases nearly doubling from 52,000 in 2023 to close to 98,000 in 2024. Financial losses also soared, climbing 74% to R1.89 billion.

Banking apps were hit hardest, representing 65% of all cases and costing consumers over R1.2 billion.

Criminal syndicates are now deploying cutting-edge tools such as AI-driven scams, deepfake impersonations, “quishing” (QR code phishing), SIM-swap attacks, and malware disguised as legitimate apps.

Despite stronger banking security, SABRIC found that human error remains the biggest weakness. Social engineering scams—where people are manipulated into giving up personal details—are driving most of the losses. Often, criminals combine phishing emails with follow-up phone calls, a method known as “vishing,” to appear more convincing.

Fraud is also spreading beyond online banking. Unsecured credit fraud jumped 57.6% last year, with more than 62,000 fake applications filed. Losses more than doubled to R221.7 million. Card fraud also grew 26.2%, costing R1.47 billion, largely from “card-not-present” transactions using stolen details for online purchases.

The growing use of artificial intelligence has made scams harder to detect, while underground “Fraud-as-a-Service” networks now sell phishing kits and stolen accounts, making it easier for newcomers to join the trade.

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