Fraud complaints at the banking ombud nearly double in a year as digital scams surge

2026-03-16 - 13:23

South African bank customers are losing money to sophisticated digital fraud at an alarming rate, with the National Financial Ombud Scheme (NFO) of South Africa recording close to double the number of fraud complaints in 2025 compared to the previous year. Standard Bank customers sound the alarm on social media A wave of Standard Bank customers took to social media recently to share what many described as devastating experiences, waking up to unauthorised transactions, drained accounts and a frustrating road to resolution. Their posts painted a picture of consumers feeling unheard and financially exposed, prompting questions about how South Africa’s biggest banks handle fraud complaints and what recourse customers actually have. ALSO READ: Standard Bank under scrutiny over ‘unauthorised transactions’ The outcry prompted a striking response from the ombud. “Fraud-related complaints increased significantly from 2024 to 2025, with our office receiving almost double the number of complaints compared to the previous year,” the ombud told The Citizen. “However, this increase has been observed across the banking industry as a whole and not in relation to any single institution.” The scale of the problem: nearly 4 000 fraud cases closed in 2025 During 2025, the ombud revealed it closed 3 651 fraud-related cases, with South Africa’s major retail banks appearing most frequently in the data. Standard Bank, Capitec Bank, Absa, First National Bank and Nedbank all feature prominently in the complaints statistics, a reflection, the NFO said, of their sheer size rather than any particular failure on their part. “As these institutions have the largest customer bases and transaction volumes in the country, they naturally appear more frequently in complaint statistics,” it said. The ombud also cautioned against reading the data as a straightforward indictment of any single institution. Criminals, it noted, routinely exploit accounts across multiple banks, sometimes using mule accounts or accounts opened with fraudulent documentation. “The presence of a bank in the statistics therefore reflects where a payment was made from, rather than indicating fault on the part of the bank itself,” the NFO said. Mobile banking fraud and social engineering dominate complaint types The majority of fraud complaints flowing into the NFO relate to digital and mobile banking, a shift that mirrors the broader move by South African consumers toward online financial services. The top complaint categories include mobile banking fraud, phishing, vishing, push payment scams, card-not-present fraud, smishing and fraud involving smart devices. ALSO READ: Bank impersonation scams on the rise Crucially, the ombud pointed out that most of these scams succeed not because of weaknesses in banking systems, but because criminals are skilled at manipulating people. “These types of fraud typically involve criminals manipulating consumers through social engineering tactics, rather than weaknesses in banking systems,” it noted. “Fraudsters often impersonate trusted institutions and send fraudulent messages or links, or convince consumers to authorise payments themselves.” The ombud added that South Africa is not an outlier. “The increase in digital fraud complaints mirrors global trends as more consumers make use of online and mobile banking services,” the NFO said. It added that banks and industry stakeholders continue to invest in fraud prevention technologies and consumer awareness campaigns. How long does it take to resolve a fraud complaint? For consumers already suffering from financial loss, the resolution timeline adds another layer of strain. On average, the NFO takes approximately 61 days to finalise a fraud-related complaint, though complex cases can take considerably longer. The NFO explained that the nature of digital fraud often complicates the process. “Fraud complaints often involve multiple transactions and may require coordination between several financial institutions, particularly where funds have been transferred to accounts held at third-party banks.” In such cases, tracing the movement of funds and engaging all relevant parties takes additional time. As an alternative dispute resolution body, the NFO depends on the cooperation of all parties involved. “Where cases involve complex fraud schemes or multiple banks, the process can take longer to ensure that all relevant facts are properly considered before a matter is closed,” the body said. The average resolution time for Standard Bank complaints, it noted, is broadly in line with the overall industry average. No systemic failures identified, but banks must do more Despite the volume of complaints, the NFO said it has not identified any systemic failures specific to Standard Bank in the handling of fraud cases. The ombud’s assessment is that the pattern of complaints reflects a sector-wide crisis driven by the explosion of digital fraud, rather than a structural problem at any one institution. “At this stage, our office has not identified any systemic issues specific to Standard Bank in the handling of fraud complaints,” the NFO said. “The matters referred to our office generally reflect the broader increase in digital fraud affecting the entire banking sector, rather than a pattern of systemic failure by any single institution.” The NFO added that each case is assessed individually. “Where complaints are referred to us, we assess each case on its individual merits, taking into account the available evidence, the actions taken by the bank and the relevant regulatory and consumer protection framework,” the NFO said. South Africa’s major banks, meanwhile, say they continue to invest heavily in fraud prevention, monitoring systems and consumer education, while calling for a collaborative approach to the problem. Addressing fraud effectively “requires cooperation between financial institutions, regulators, law enforcement, and consumers”, it said. What can consumers do? For customers who feel their bank has not adequately addressed their fraud complaint, there is a formal path to independent recourse. “If the matter remains unresolved, consumers may refer their complaint to the National Financial Ombud Scheme South Africa for independent review,” the NFO said. In the meantime, the ombud is urging all banking customers to take an active role in protecting themselves. “Consumers are encouraged to remain vigilant, verify payment details carefully and report suspicious activity immediately to their bank,” the ombud said. READ NEXT: Beware eBucks rule that could leave you stranded on Level 3