The Southern African Fraud Prevention Service (SAFPS) has expressed grave concerns regarding the significant surge in fraud cases, particularly related to money muling and forged documents, over the past three years.
The recently released 2023 Fraud Statistics by SAFPS shed light on the escalating incidents of fraud from April 2022 to the end of April 2023.
According to SAFPS, the fraud landscape has witnessed a substantial rise over the years, with impersonation fraud, money muling, and forged documentation posing the most significant challenges.
The latest statistics reveal that the province of Gauteng is the primary hotspot for fraud, accounting for 66% of all reported cases. KwaZulu-Natal follows with 17%, and the Western Cape with 8%.
Manie van Schalkwyk, CEO of SAFPS, expressed deep concern over the audacity of fraudsters and the rapid increase in certain fraudulent activities.
“While South Africa is heavily investing in digitization to catch up with the rest of the world, this process comes with risks,” van Schalkwyk stated. “A 2021 Interpol report identified South Africa as the top African country in terms of cyber threats, ranking third globally with 230 million threats detected, of which 219 million were related to emails.”
Van Schalkwyk also highlighted the significant challenge posed by scams where fraudsters assume the identity of victims. These instances saw a staggering 236% increase compared to the same period in 2022.
He further pointed out a notable 62% rise in the use of forged documentation, including counterfeit driver’s licenses used for identification when applying for credit. SAFPS will closely monitor this risk going forward.
The statistics indicate a staggering 356% increase in impersonation fraud over the past year, which can be attributed to data leaks and compromised personal information—a problem that has seen a significant uptick in South Africa recently.
To tackle these challenges, SAFPS has recently launched two platforms that will fundamentally alter the dynamics by shifting the pressure from consumers to fraudsters.
The first platform is called Yima, a website that enables consumers to report scams and verify the legitimacy of websites they intend to visit, differentiating between genuine and proxy websites.
The rapid growth of social media has also become a breeding ground for fraudulent activities. Recognizing the significance of online marketplaces and the associated threat of fraud, SAFPS, through its subsidiary company Secure Citizen, has developed a functionality that allows individuals to authenticate other sellers before engaging in transactions, thereby minimizing the risk of fraud. Van Schalkwyk believes that Secure Citizen and Yima will completely transform the landscape of fraud prevention.