How AI is reshaping financial crime in South Africa

South Africans should be harder to fool by now. Yet scams, false promises and misplaced bets continue to thrive. Spending on gambling surged 150% between 2020 and 2024. Political pledges keep coming, but delivery does not. And financial frauds are multiplying – now supercharged by AI.

AI is helping crooks create cons so elaborate that they are almost indistinguishable from reality. Deepfake videos of President Cyril Ramaphosa promoting bogus investments, cloned bank and investment websites promising implausible returns, and WhatsApp groups posing as JSE traders are part of a new wave of financial crime.

“The lines between trusted financial service advice and fraudulent manipulation have become dangerously blurred,” says Ulrich van Rensburg, chief fraud and analytics officer at Absa. “Today’s scammers are skilled manipulators who rely on AI and social media platforms to craft compelling narratives that deceive even tech-savvy users.”

The South African Banking Risk Information Centre says in its 2024 Annual Crime Statistics report that digital-banking fraud incidents nearly doubled, with the number of incidents surging 86% to 98,000 and losses rising to R1.89bn in 2024 from R1.08bn a year earlier. Digital bank fraud accounts for almost 70% of recorded financial losses in the banking industry.

Where once criminals relied on clumsy phishing emails riddled with spelling errors, they now deploy generative models capable of creating flawless content, replicating official websites, cloning voices and producing deepfake videos that mimic public figures with uncanny accuracy.

Fraudsters are increasingly using remote access tools that let them take control of a victim’s phone or computer, often tricking people into handing over login details or approving transactions.

They also rely on voice-based social engineering, calling customers and pretending to be bank officials to create panic and pressure them into acting quickly. In addition, they exploit online non-3D-secured transactions – card payments that skip one-time pins or extra checks – to push through purchases with stolen details, duping banking clients out of their money.

Their targets are typically higher-income earners, particularly those who are digitally active and often elderly, “instilling panic and fear in unsuspecting customers who fall prey to criminal activities under the guise of protecting their money”, Van Rensburg adds.

The Financial Sector Conduct Authority (FSCA) has issued multiple public warnings this year. In June, it flagged deepfake videos featuring billionaire Patrice Motsepe, SABC breakfast host Leanne Manas, Ramaphosa and even Deputy President Paul Mashatile being used to endorse dodgy schemes. A month later, it warned of WhatsApp messages impersonating the FSCA commissioner himself, pitching an “AI trading tool” that guaranteed returns of 20%-30%.

According to internal research by verification company Sumsub, South Africa experienced a staggering 1,200% increase in deepfake-related attacks in 2023 – the highest reported surge in Africa in that period. A Kaspersky study separately found that only 21% of South African employees could distinguish a real image from an AI-generated one.

How the scams work

The methods are varied but share a common theme: exploiting trust.

• So-called “pig-butchering” scams use fake or deepfake profiles on dating apps and social media to build relationships with victims. Over weeks or months, scammers introduce fraudulent crypto or trading platforms, showing fabricated “profits” until the victim’s savings are drained. The name captures the sequence: fatten, then slaughter.
• Impersonating financial institutions has become easier with AI. Fraudsters replicate bank logos, websites and registration numbers, often luring customers with “exclusive” offers. Some victims are shown fake statements or are even able to log into bogus platforms before the operators vanish with their deposits.
• Fake crypto platforms ride the hype around bitcoin. Criminals invent new coins or tokens, fabricate growth charts, and rope in victims with comparisons to legitimate cryptocurrencies.
• Deepfake endorsements are especially potent. A fabricated video of professor Salim Abdool Karim, South Africa’s leading epidemiologist and co-chair of the Covid ministerial advisory committee, declaring that vaccines were deadly spread widely before being debunked. Another version had him touting a miracle heart treatment. Elon Musk and Johann Rupert have also been impersonated to push fraudulent investments.
• WhatsApp investment groups have lured victims into downloading apps disguised as JSE trading platforms. In one case, an investor lost more than R6m after being convinced the trades were genuine.

What makes these scams so dangerous is that the usual red flags – spelling mistakes, odd phrasing, low-quality visuals – are disappearing. AI has given criminals the ability to produce polished, professional-looking materials at virtually no cost.

Banks and financial firms respond

South Africa’s major banks have stepped up warnings to clients. Standard Bank recently cautioned customers about AI-generated voices and emails that appear to come from legitimate bank officials. FNB has flagged cases of criminals using cloned voices to impersonate family members or advisers, tricking victims into transferring funds. Woolworths Financial Services has warned of callers using AI voice cloning combined with remote-access software instructions to harvest login details and one-time passwords. Even the JSE has issued alerts after being impersonated.

Still, while banks try to stay “ahead of the curve by investing in technology, innovation, empowering our customers through fraud education and awareness, and building a fraud-resilient ecosystem”, Van Rensburg says, “fraud is a global challenge which requires collaboration by all parties”, including regulators, the industry, banks and customers.

“Our fraud teams work around the clock, but what really makes the difference is consumer vigilance. If something looks too good to be true, it almost certainly is.”

The FSCA has taken a more aggressive stance, publicly naming and shaming fraudulent platforms, and debarring individuals from ever practising in the financial services industry again if they’re found to be corrupt. It has urged social media platforms to take more decisive action to shut down fake accounts and adverts that misappropriate financial brands.

How to protect yourself

Financial firms stress that consumer awareness remains the best line of defence.

Practical steps include:

• Verify: check on the FSCA’s website that an investment provider is licensed.
• Get a second opinion: consult a certified financial planner before making large commitments.
• Research independently: look for physical addresses, company registrations and independent reviews.
• Be sceptical of urgency: scammers often insist you “act now”. Legitimate financial services rarely require snap decisions.
• Guard your information: never share one-time pins or passwords, even with someone who appears to be a bank official.

As Van Rensburg puts it: “Pause before you click, send, or invest. If you feel pressured, step back and double-check.”

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