The digitisation of payments has unlocked vast economic potential that drives growth, efficiency and inclusion.
But this progress comes with new risks, writes Ursula Pearson-Williams, head of fraud intelligence at PayInc.
According to Juniper Research, global online payment fraud is expected to exceed $362-billion between 2023 and 2028 as criminals exploit technology and trust in more sophisticated ways.
One of the fastest growing threats is Authorised Push Payment (APP) scams, where victims are tricked into sending money directly to criminals. This year’s ACI Worldwide’s Scamscope Report warns that APP fraud alone could reach US $7,6-billion by 2028 across key markets such as the UK, US, India, Brazil, Australia, and the UAE.
South Africa is not immune. APP scams are rising across banks, mobile operators and trusted institutions. Using social engineering tactics, AI-generated voices and identities, and coordinated mule networks, fraudsters are finding new ways to exploit everyday payment habits.
The South African Banking Risk Information Centre (SABRIC) reported that digital-banking fraud incidents surged 86% in 2024, with losses up 74% to R1,8-billion. AI-driven scams, phishing, and deepfake impersonations highlight the need for adaptive, intelligence-led protection.
Additionally, in a cash-dominant economy, the digitisation of cash supply chains is also opening new avenues for fraudsters to exploit.
The interconnected and complex digital era has blurred the lines and intensified risk. Rising payments fraud now tests not just systems, but the strength of the collective response.
This demands an industry approach unified through intelligence, agility, and trust. If we, as an industry want to achieve true financial inclusion, we need to be committed in our efforts for ensuring secure, digital payments for all participants in the economy.
The hidden links in APP fraud
Every day, South Africans make payments, tapping, scanning or clicking without hesitation.
Behind the convenience, criminals quietly exploiting gaps across systems, institutions, and jurisdictions. What seems like an isolated case can often be part of a larger criminal network connected to cybercrime.
South Africa is witnessing a rise in vishing, phishing and business email compromise scams linked to money mule networks. These crimes may appear unrelated but often form part of broader, syndicated operations, seen by the PayInc Fraud Intelligence team.
Fraudsters often begin with a promise of high investment returns or an urgent message requesting personal information.
Using sophisticated tools, they build trust, convince victims to authorise real payments, and then move the money through multiple bank and mule accounts. This web of transactions hides the trail, making it difficult for banks and law enforcement to recover stolen funds.
Incidents of fraud and financial crime – particularly for APP scams where victims remain liable for authorising payments they were deceived into in many jurisdictions – are eroding trust in the digital payments landscape.
This serious concern among the underserved for whom every rand matters and the loss of hard-earned money can be devastating. If left unaddressed, these threats risk diluting years of work and investment by the industry and regulators to advance financial inclusion and strengthen trust in digital payments.
Driving a secure, connected ecosystem
Reassuringly, the industry is fighting back against fraudsters.
In the instant payments domain, PayInc is leading the effort with advanced, industry-specific fraud controls on payments rails purpose-built for the country’s electronic payments landscape.
Financial institutions are deploying enhanced AI-driven monitoring, behavioural profiling, and real-time analytics to detect suspicious activity faster.
Regulators are also stepping up consumer-protection and cybersecurity frameworks, while fintechs and specialised tech firms are forming partnerships to close critical gaps.
In the UK, banks, telecoms, and tech companies have joined forces under the Stop Scams UK initiative involving sharing real-time fraud data and collaborating with government and law-enforcement agencies to make the environment increasingly hostile to criminals.
In South Africa, the call for collaboration remains strong. The Financial Conduct Authority has echoed the need for a coordinated, cross-sector response, bringing together banks, regulators, telcos, and law enforcement to confront the growing threat of digital fraud.
Encouragingly, these actions demonstrate a firm industry commitment to securing a connected ecosystem as a top priority, reinforcing confidence with consumers – and only growing stronger.
Collective action through ‘Ubuntu’
As the Association of Certified Fraud Examiners (ACFE), the world’s largest anti-fraud organisation, marks this year’s Fraud Awareness Week, currently underway between 16 and 22 November 2025, under the theme ‘Ubuntu’, the same spirit of collective action should guide the payments industry in the act against payments fraud.
With digital payment adoption accelerating and the ecosystem broadening, collaboration has never been more critical for ensuring secure digital payments.
By staying alert to the growing interconnectedness of fraud types, emerging fraud types, and by being committed to fight this collectively through data sharing and co-created solutions, South Africa’s payments industry can strengthen consumer confidence and safeguard trust in the country’s digital future.
More importantly, this united effort can help drive inclusive, sustainable economic growth for all.