A recent report from COMRiC shows that South Africa faces huge losses from telecom‑linked fraud. Mobile banking scams now cost the country roughly US $300 million a year. That is about 5.3 billion rand.
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Nearly 60 percent of those cases are linked to SIM swap crimes. In these scams attackers hijack someone’s mobile number. They then gain access to financial accounts. Once in, they move money out fast and often go undetected.
This issue is now one of the biggest financial threats in South Africa. As more people use mobile banking, fraudsters are finding new ways to deceive and exploit mobile systems.
COMRiC says the problem is growing because telecom and financial systems are still vulnerable. Many mobile users share personal details or PINs, making account theft easier. Weak processes at telecom operators also make attacks simpler.
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Experts warn that both telecoms and banks must improve security fast. They must strengthen identity verification and SIM swap detection. They also need public education. Mobile users should know not to share codes or documents. Faster fraud alerts and recovery mechanisms must also be put in place.
Telecom providers are urged to monitor SIM change requests more closely. Banks are advised to step up two‑factor authentication that is not purely code based. Regulators need to enforce stricter rules to protect users.
Until these steps are taken, consumers are at risk. Fraud losses can damage trust in mobile finance, especially for small businesses and low income users.
South Africa’s digital economy is growing fast. But scams are undermining progress. Mobile banking fraud threatens both consumers and service providers.
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If both government and private sector act now, they can stem the losses. Stronger rules, better systems and aware users can together reduce fraud. Ultimately this will help secure South Africa’s mobile financial future.
