South Africa’s Southern African Fraud Prevention Service prevented fraud losses totaling R7.44 billion in 2025, marking a 47% increase from the previous year.
The organization, which collects fraud intelligence from banks, insurers, and retailers, attributed the rise to both heightened criminal activity and improved data-sharing among members. Its database processed 131 million queries last year, a 63% jump, enabling companies to detect suspicious transactions before funds were transferred.
Fraudsters combine old tricks with new tech
SAFPS CEO Manie van Schalkwyk explained that criminals have shifted from working alone to forming networks that merge multiple tactics into single attacks.
“Fraudsters no longer depend on one method,” he said. “They call posing as bank representatives, use fake IDs to open accounts, and transfer stolen money within hours.”
Document fraud remains prevalent. Altered payslips, forged IDs, and counterfeit bank statements are still used to obtain loans, insurance payouts, and retail credit. However, phone-based scams—where criminals impersonate trusted institutions—have become a primary method, often paired with money mule accounts set up in advance to launder stolen funds.
Hotspots and hidden networks
Gauteng and KwaZulu-Natal reported the highest fraud cases. Gauteng saw concentrated instances of document forgery and identity theft, while KwaZulu-Natal led in funeral and long-term insurance fraud, along with bank statement scams and vishing.
The regional patterns indicate criminals target areas with high financial activity but also demonstrate that fraud spans multiple sectors. A single network might exploit banks, insurers, and retailers in rapid succession, using the same forged documents or mule accounts across all three.
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SAFPS’s approach depends on members submitting confirmed fraud cases to a central database. This shared intelligence allows other companies to identify repeat offenders or new patterns before losses occur. The system’s strength lies in the collaboration behind it, van Schalkwyk noted.
“Each reported fraud case strengthens the entire network,” he said. “The goal isn’t just to protect one company but to make the whole system more secure.”
Beyond technology, SAFPS is advocating for greater public awareness about scams. Many victims only report incidents after financial losses, but van Schalkwyk believes discussing tactics—how fraudsters operate and what warning signs to watch for—can help reduce future risks.
“Open conversation makes it harder for criminals,” he said. “Secrecy benefits them.”
The report highlighted that mule accounts, often opened with stolen or synthetic identities, are now central to fraud operations. These accounts receive stolen funds, which are quickly moved or withdrawn, making recovery difficult. The efficiency and coordination suggest a structured money-laundering network supporting various fraud schemes.
SAFPS is expanding its efforts across Southern Africa, partnering with regulators and businesses to strengthen fraud controls. Its new tagline—preventing fraud through shared intelligence—reflects the strategy: no single entity can combat fraud alone, but a network of data and vigilance offers a stronger defense.
While last year’s prevented losses set a record, van Schalkwyk remains cautious. “The figure shows the scale of the problem,” he said. “We’re stopping more, but criminals are escalating their efforts.”
