Banking and financial crimes are cause for concern in the country, South African Banking Risk Information Centre (Sabric) said in a statement.
The crimes the institution identified include contact crimes, digital offences, and fraud of various forms, all of which have far-reaching consequences for the economy, society and governance, the organisation said.
The organisation said such criminal activities were casting a long and dark shadow over the nation’s economy, and placed people’s lives in danger.
The Sabric annual crime statistics report for 2022 sheds light on the multifaceted landscape of financial fraud as well as security challenges facing the banking industry.
These key findings from the report underscored the complexity of the difficult situation the country faces. This includes increasing incidents of ATM bombings and cash-in-transit heists, the report said, adding that between 2021 and 2022, ATM explosive attacks increased by 23% despite the activation of dye-stain as a deterrent.
South Africa witnessed an alarming 36% surge in reported incidents of online banking fraud in 2022, with fraudsters deploying a range of tactics, including social engineering and “vishing” scams to deceive victims into divulging sensitive information.
The industry recorded a 34% decrease in associated robbery incidents during 2022 and a 38% decrease in associated losses to clients when compared to 2021, stating that these crime incidents, including robberies, posed “a reputational risk to the banking sector as it is the client who suffers the cash loss”.
The year 2022 saw a surge in reported incidents of digital banking fraud, with a notable increase of 24% compared to the previous year.
This rise is primarily attributed to the growing number of fraud cases related to banking applications and internet banking.
The organisation said that cybercriminals took advantage of banking clients’ utilisation of these platforms to engage in their unlawful actions, resulting in a substantial impact on the financial industry.
“Alongside the rise in incidents, the financial losses associated with digital banking fraud also saw a large increase. Gross losses escalated from R440 123 125 in 2021 to R740 847 488 in 2022, reflecting a 68% rise in financial impact.”
Sabric CEO Nischal Mewalall said: “Collaboration among government entities, the private sector, and civil society is paramount to effectively combating financial crime.
“The commitment of organisations such as Sabric to bolster law enforcement capabilities,fortify regulatory frameworks, and promote transparency and accountability is unwavering.”
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