The rate of banking sector-related contact crimes such as branch-before-deposit and ATM-after-withdrawal robberies are in sharp decline as criminals find higher rates of success through digital means to defraud people.

According to the South African Banking Risk Information Centre’s (Sabric’s) Annual Crime Statistics 2024 report, robberies dropped 35% year on year in 2024, with associated losses by the banking sector declining by 64% compared to 2023.

“The notable decline in related robbery incidents is largely due to a collaborative project between the banking industry and the South African Police Service, aimed at sharing information on identified suspects and alerting authorities when these individuals entered bank branches, enabling the identification of potential cash-withdrawal victims,” the report said.

Despite the drop in contact crimes, the banking sector sees their occurrence as a risk, especially since customers who are robbed tend to lose trust in the system.

According to Sabric, clients making ATM deposits are most vulnerable to attacks at the machines in the first six days of the month when grant payments are collected.

Criminals also take advantage of ignorance and superstition, with tactics such as smearing “muti” on victims to extort money from them and using the “money bomb” tactic, where a wad of cash is dropped next to the victim to trick them into forking out more money.

ATM bombings dropped by 18%, with cash losses declining by 44%. Despite the positive trend, ATM bombings are still over 85% successful, meaning criminals can still access cash even though dye-stain technology is used to protect it.

Prime targets

Two-thirds of ATM bombings were reported in Gauteng, followed by Limpopo at 9%. The southern parts of Gauteng were most affected, with Johannesburg accounting for 45% and Ekurhuleni 38% of all attacks. Petrol stations with more than one ATM in the forecourt were the prime targets, and in some instances the store and drop safe inside were also targeted.

In contrast, digital crimes surged 86% over the same period with associated losses rising by 74% to R1.9-billion. Added to this is a steep rise in application fraud, especially through vehicle asset finance, which recorded a 50% year-on-year increase in incidents and a 71% year-on-year increase in potential losses, which totalled R23-billion.

Sabric said the modus operandi of vehicle cloning and illegal changes of vehicle ownership continue to challenge the banking sector and other stakeholders. A cloned vehicle is stolen or hijacked and then illegally registered using the details of a legitimate vehicle on government’s eNatis system.

Read: AI-led digital banking fraud is surging in South Africa

They are often rapidly transferred between three or four owners over a short period to create a fake ownership history and obscure the vehicle’s origins.

“The use of AI-generated documents and deepfakes further complicates detection. Fraudsters are increasingly submitting forged payslips, altered bank statements, and even impersonating applicants through AI-generated video and audio during remote verification,” said the report.

These new-age forging techniques also contributed to a rise in unsecured credit fraud, with reported incidents rising 58% year on year and corresponding potential losses up 62%. Both vehicle finance and unsecured credit fraud are worsened by organised syndicates who use sophisticated technology and cross-border reach to take advantage of gaps in law enforcement co-ordination across jurisdictions and weak recovery networks.

“Sabric acknowledges that these trends represent not only technological but also behavioural challenges, with social engineering attacks exploiting human error as a primary vulnerability. Multi-factor authentication, biometric verification and increased public awareness remain key deterrents,” it said. – © 2025 NewsCentral Media

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