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In 2025, South Africa had the highest suspected digital fraud rate among the analyzed African countries, with 3.0% of transactions flagged as potentially fraudulent. This rate is marginally lower than the global average of 3.8%, as reported in the TransUnion H1 2026 Update: Top Fraud Trends report.

Although there was a decrease from 4.3% in 2024, the report warns that this does not necessarily indicate a drop in criminal activity. Rather, it points to a trend towards more advanced, AI-driven fraud techniques aimed at enhancing accuracy, scalability, and success rates.

<h3>Fraud losses remain high but trail global levels</h3>

The median reported fraud loss among South African consumers who experienced digital fraud in the past year was R11,055. This is the second highest in Africa after Kenya, but significantly lower than the global median of R27,879.

The findings point to an increasingly complex fraud environment where criminals are using more targeted and coordinated methods across email, online platforms, phone calls, and SMS channels.

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<h3>AI and trust-based attacks reshape fraud landscape</h3>

The report indicates that generative AI is increasingly helping fraudsters carry out more convincing and scalable attacks. Criminals are moving away from traditional phishing and scam messages, instead embedding themselves within trusted digital spaces.
A notable finding is that 33% of South African consumers who fell victim to digital fraud reported being targeted by third-party seller scams on legitimate e-commerce sites. This trend illustrates that fraud is now more prevalent in trusted environments rather than in obvious or dubious contexts.

"Criminals are taking advantage of established trust and verified digital relationships," remarked Amritha Reddy, a fraud expert from TransUnion Africa, highlighting a shift from global trends primarily characterized by phishing and vishing.

In South Africa, a significant portion of suspected fraud occurs during account login. In 2025, 3.0% of login attempts were flagged as potentially fraudulent, compared to 2.4% at the account creation stage and only 0.7% during financial transactions. This suggests a strong emphasis on account takeover attacks involving compromised credentials, SIM swaps, and social engineering, rather than the creation of fake accounts.
Reddy emphasized that fraud prevention strategies should extend beyond the onboarding phase and encompass the entire customer journey.

Fraud patterns differ notably by sector as well. In South Africa, government-related transactions had the highest suspected fraud rate at 12.5%, followed by gaming at 11.5% and insurance at 7.8%. The report notes that while digitizing public services enhances accessibility, it also opens new avenues for impersonation and fraud. "Fraudsters are using official branding and communications to pose as state entities," Reddy added.

Consumer expectations are influencing fraud prevention strategies, with a survey showing that 85% of South African consumers view data security as the top priority when selecting whom to transact with online. Ease of payment and simplified application processes are also important, but the findings suggest that consumers are willing to endure some inconvenience if it enhances security and trust.

The report concludes that South Africa is entering a more sophisticated phase of fraud, where criminals increasingly exploit trust, operate across various channels, and target established digital relationships. As AI continues to enhance the sophistication of fraud, both consumers and businesses are encouraged to bolster identity protection, implement adaptive authentication, and invest in ongoing fraud detection throughout the entire digital experience.

Author

Thomas MUNJAM

CEO / Founder