SIM swap scam warning
The Communication Risk Information Centre (Comric) has warned about a surge in SIM swap fraud and other digital scams targeting South Africans.
Comric CEO Advocate Thokozani Mvelase is calling for increased vigilance as malicious actors exploit vulnerabilities in mobile network systems to process fraudulent SIM swaps.
By doing so, they can take control of a victim’s phone numbers and intercept sensitive communications, including one-time PINs for transactions and banking credentials.
This enables fraudsters to steal funds from bank accounts and commit identity theft.
These sophisticated schemes target both individuals and businesses and have become a significant concern in the fight against digital fraud in South Africa.
“This is a direct attack on the trust and security of our digital systems,” said Mvelase.
“The emotional and financial impact on victims is devastating, and the consequences ripple through families, businesses, and the broader economy.”
Citing data from the South African Banking Risk Information Centre, Comric highlighted that SIM swap incidents accounted for nearly 60% of mobile banking fraud cases in 2023, with 5,709 reported incidents.
Fraudsters have been exploiting a SIM swap loophole that requires the account holder to actively opt out of a SIM swap request for it to be blocked.
This presents a significant challenge when customers are overseas without SMS roaming or when different time zones result in the opt-out message being sent while the customer is asleep.
Comric also warned about a marked increase in phishing attacks, social engineering scams, and fake investment schemes.
It noted that South African individuals and businesses have already suffered substantial financial losses due to these malicious activities in 2024.
Citing TransUnion’s 2024 State of Omnichannel Fraud report, Comric said 4.1% of digital transactions in South Africa in 2023 were flagged as suspected fraud, representing a 27% year-over-year increase.
To combat these trends, Comric is collaborating with financial institutions, mobile network operators, and law enforcement agencies to strengthen security protocols, implement encrypted verification systems, and close loopholes.
“Combating digital fraud requires more than just technological solutions — it demands collective action and a culture of vigilance,” says Mvelases.
Comric also urges victims to report incidents of fraud immediately.
“Fraud is a shared problem that affects us all,” says Mvelase.
“This International Fraud Awareness Week, let us commit to safeguarding our digital lives, fostering a culture of security, and working together to create a safer, more resilient online environment.”
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