South African businesses are facing an unprecedented and rapidly evolving threat from fraud, with two-thirds (66%) reporting a surge in losses over the past year, according to new research commissioned by Experian.
The study, conducted by Forrester Consulting, reveals a critical defence gap: as cybercrime networks expand and leverage generative AI (GenAI), 68% of EMEA and APAC business leaders admit their current security tools are no longer adequate to protect them.
Key findings from the survey include:
Fraud losses surge: 66% of South African businesses report year-on-year increase
Threat outlook: Locally, 77% expect more attacks in 2026 than last year
Tech gap: Across EMEA and APAC, 68% say their current fraud tech can’t keep pace with threats.
Passive checks gain traction: 78% of South African business leaders plan to invest in device & behavioural data
Collaboration on the rise: Overall, 74% expect majority of businesses to be part of shared fraud networks within 3 years
The study, based on insights from almost a thousand senior fraud decision-makers across nine countries in EMEA and APAC, including Australia, Denmark, Germany, India, Italy, New Zealand, Norway, South Africa and Spain; reveals a growing gap in fraud prevention capabilities.
Sector-specific trends show social engineering and identity theft rising in Financial Services and Telcos, while friendly fraud and refund abuse are increasing in eCommerce.
Technology gaps slow response
The research highlights how traditional approaches are falling behind.
Overall, nearly 68% admit their current fraud stack is inadequate, and the urgency to modernise is clear.
The traditional “build-versus-buy” dilemma is slowing progress, as businesses need solutions now, not months or years later.
In fact, 78% of South African businesses are investing more in fraud technology than in human analysts, signalling that manual reviews and rules-based systems can no longer keep up.
Modernisation and machine learning take centre stage
Seven in 10 respondents cite strategic reviews of fraud solutions as their top priority for the year ahead, followed by migrating systems to the cloud and investing in new tools.
Additional datasets – such as device and behavioural data – are now essential for accurate fraud detection.
Making sense of these large datasets requires machine learning, and the benefits are clear: 77% of ML users in South Africa report measurable improvements in detection accuracy since implementation.
The biggest advantage of ML is real-time detection, cited by 54% of all respondents, along with the ability to retrain models on new data to keep pace with evolving fraud tactics.
In South Africa, 78% agree ML helps detect fraud that rules-only systems would miss, proving its role as a critical enabler of modern fraud prevention.
Collaboration is the future of fraud prevention
Nearly 73% of businesses overall agree that sharing fraud intelligence is key to staying ahead of threats.
However, this requires trust and secure infrastructure. Three-quarters of respondents believe that building trust within fraud consortiums is essential for success.
“Fraud was never a static challenge, it’s constantly evolving,” says Bree Caprin, chief customer officer at Experian Africa. “Generative AI has become a powerful tool for fraudsters, dramatically increasing the speed and sophistication of attacks.
“Businesses need to modernise their fraud strategies now. Today, 71% of businesses are investing more in fraud technology than in human analysts, a clear signal that manual reviews and rules-based systems are not enough to combat this new wave of threats.
“Adopting tools like device intelligence, behavioural analytics, and machine learning is becoming essential.
“In our current economic climate, building resilience through collaboration and innovation isn’t just about preventing loss; it’s about securing future growth.”