Cyber Awareness

Banking Apps Now Linked to R1.7 Billion in Fraud Losses, SABRIC Report Reveals

By Mthobisi Nozulela, Mthobisi Nozulela

South Africans are increasingly relying on banking apps to manage their finances, but a new report shows these platforms have become the primary target for digital banking criminals, who rely heavily on social engineering to trick customers into authorising fraudulent transactions.

The South African Banking Risk Information Centre (SABRIC) released findings showing that banking app-related crime made up around 89% of all reported digital banking crime cases in 2025, accounting for 70.5% of the total value of claims. This translated into R1.7 billion in reported client losses linked to banking apps, making them the largest single contributor to digital banking crime losses for the year.

By comparison, internet banking made up less than 9% of reported cases but represented approximately 28.6% of the total claim value, indicating that even a small number of internet banking incidents can lead to significant financial losses. Mobile banking accounted for under 3% of cases and less than 1% of claim value, though SABRIC noted its continued relevance due to its links to SIM swap fraud.

Overall, SABRIC recorded 110,074 digital banking crime incidents during 2025, with total client claims reaching R2.41 billion. This represents a 29.2% increase from the R1.86 billion recorded in 2024.

Importantly, SABRIC clarified that the high proportion of banking app-related cases does not indicate that the apps themselves or underlying bank systems were hacked or compromised. Instead, the organisation explained that fraud typically originates outside the banking platform. Criminals often impersonate trusted institutions, create a false sense of urgency, or manipulate victims into carrying out transactions in real time. Once the victim has been deceived, the banking app is then used to add new beneficiaries, approve payments, or transfer funds.