Online Scams & Fraud in South Africa

Though cybercrimes are Tie up How much does it cost to build a foreign exchange platformcriminalized in South Africa, they are still rampant with millions being lost yearly. The lack of a centralized reporting system means that citizens have to report to local police stations which makes data collection and appropriate action difficult.

That said, several organizations are stepping up efforts to fight scams. They include; The Cybersecurity Hub, The South African Banking Risk Information Centre (SABRIC), and the Police Economic Crime Unit.

Read on to find out all you need to know about online scams and fraud in South Africa including where to report scams and where to get victim support.

Scam Statistics in South Africa

The key statistics on online fraud in South Africa, according to the Global Anti Scam Alliance. 

 

	2018	2019	2020	2021
Population	56.72 million	58.6 million	59.3 Million	60  million
Internet Penetration	67%	53%	55%	53%
# of Scams			27,928	30,000
Scams / 1,000			0.5	0.5
Money Lost		€13.2 million	€ 79 million	€ 90.4 million
Money Lost / Capita		€ 0.32	€ 1.34	€ 1.5
Money Lost / Report			€ 2,837	€ 3,028.7

The figures in the table will differ strongly per year as various sources have been used, pending on availability.

Download the Global State of Scam

Where Can I Report a Scam in South Africa?

• South African Police Service (SAPS)- The South African Police Service is the national police force of South Africa. They have a Cybercrime Unit that deals with cyber-related crimes, including online scams.
• Cybersecurity Hub- They are the country’s National Computer Security Incident Response Team (CSIRT) where cyber incidents, including scams, can be reported.
• South African Banking Risk Information Centre (SABRIC): SABRIC is a non-profit organization that represents the banking industry in South Africa. They focus on combating banking-related crimes, including online scams.
• South African Fraud Prevention Service (SAFPS): The SAFPS is a non-profit organization that aims to prevent and minimize the effects of fraud and identity theft in South Africa. You can call SAFPS on 011-867 2234.

Report a Scam

How to Report a Scam in South Africa

Reporting a scam is crucial. At the moment, only 7% of all scams are reported. As a result, only 0.05% of all cybercriminals are caught. Reporting online fraud is not only essential if you want to try and get your money back. It is also needed to help law enforcement fight scammers better.

• Gather info:Collect all information about the suspected fraud including the name, telephone, key web pages, emails, IP address, and any other information relevant. This is needed to file a complete report.
• Report the incident:Always report to your local law enforcement and note the file number they might provide for your fraud report for future reference.
• Stop the Money:Report the incident to the financial institution that transferred the money such as your bank, Paypal, credit card company, or the Internet payment service provider.
• Protect yourself:Scammers often contact you again. Sometimes with the same scam. Sometimes to help you “recover your money”. Consider changing your email address/phone number. Also, install the FTI browser extension to warn you of scams.
   

Our article “How and Where to Report a Scam” gives you more detail and tips on how you can best report online fraud.

Scam Victim Support in South Africa

We are unaware of any scam victim support in South Africa.

How to check for a scam in South Africa

Of course, you can always check for scams on FTI.com. However, there are several other sources where you can check if a website is registered as a company and if it can offer financial, gambling, or other regulated services as well.

• The Financial Intelligence Centre- You can check the registration of financial companies on FIC's website as well as report suspicious activities.
• The South African Banking Risk Information Centre (SABRIC)- You can check for bank-related fraud here as this non-profit organization helps fight such scams.

Anti-Scam Organizations & Consumer Authorities

• The South African Fraud Prevention Service (SAFPS)-As the name suggests, they are tasked with helping prevent fraud & financial crime in South Africa.

Popular Scams in South Africa

Money Mule Scams

With South Africa experiencing one of the highest unemployment rates in the world, it's common to see people doing anything to boost their income. One of the fastest-raising scams in South Africa is the Money mule scam where people receive funds on their accounts from others.

The criminals approach the unsuspecting customers asking them if they have a bank account and if they would want to make some quick money. If the person agrees, the criminals will use the back accounts to transfer illegally obtained money and pay the account holder.

Don’t let the fraudsters misuse your kindness by using your account for money laundering or other illegal activities. Plus, never open a bank account in your name on behalf of anyone, irrespective of the prevailing circumstances. 

Scam News From South Africa

• Nearly Two-thirds of South Africans Say Friends or Family Have Been Scam Victims
• South Africa’s biggest bank warns of new scams targeting customers

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