Criminals are increasingly using extortion, e-mail and text scams – especially phishing scams – to target banking clients in South Africa, Standard Bank warned on Wednesday.

As a result, there has been a “considerable” rise in “financial and emotional distress for thousands in recent months”, the bank said.

Standard Bank head of fraud risk management Athaly Khan said the growing sophistication of the scams – with fraudsters frequently adapting their tactics to deceive individuals into sharing sensitive information – has in some cases even resulted in victims being coerced into transferring money into the fraudsters’ accounts.

Khan said common tactics used by scammers in recent months include:

Fake non-compliance notifications. Fraudsters are exploiting the banks’ need for compliance with the Financial Intelligence Centre Act (Fica). “They purport to be the bank, sending our customers e-mails and SMSs, claiming that their accounts are not Fica compliant,” she said. “Their e-mails and SMSes include malicious links, urging customers to click on them or risk their account being blocked or closed.”

When they click on the link, customers may be routed to a fake login site or prompted to capture sensitive information such as their card number, expiry date, customer verification value or one-time Pin. “In some instances, the link may cause disruption on the customer’s device, giving the fraudsters remote access and total control.”

Prime hunting ground

Extortion scams. These often involve threats to harm individuals, expose sensitive personal information about them or tarnish their reputations unless a ransom is paid. “We’re increasingly seeing fraudsters impersonate respected bodies such as the South African Reserve Bank, the South African Revenue Service and the South African Police Service,” said Khan. “They claim to be investigating customers for serious offences – anything from fraud to money laundering.”

Read: Virtual bank cards are going mainstream in South Africa

Standard Bank said that in some schemes, victims are given a fake account number and instructed to transfer all their funds for the duration of the “investigation”. In others, the criminals allege they possess compromising material such as private photographs, financial records or other personal details, and demand payment in exchange for keeping it confidential.

“These fraudsters go to extreme lengths to convince the targeted individual that they are from legitimate authorities. This includes telephone calls, e-mails and documents, and they sometimes suggest physical meetings.

“The internet has become a prime hunting ground for fraudsters. Customers need to be wary of information they share on social media platforms as cybercriminals are becoming increasingly sophisticated in their orchestration,” said Khan.

Standard Bank said customers who are targeted must not allow fear to consume them. “Take time to verify the legitimacy of the claims. Never send money or click on a link in response to unsolicited messages. Legitimate organisations, including banks, will never ask for payments or sensitive information this way,” it said.

“If you believe your bank account may be compromised, contact your bank’s fraud department right away. They can help you secure your account and investigate the issue. Regularly review your bank and credit card statements and report any suspicious activity.” — © 2025 NewsCentral Media

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