South Africa had the highest rate of suspected digital fraud among the African countries analysed in a new study, with 3% of transactions involving consumers in South Africa being suspected of digital fraud during 2025 – slightly below the global average of 3,8%.
In 2025, the median reported fraud loss among South African consumers who said that they had lost funds to digital fraud (email, online, phone call and text messages) in the previous year, was R11 055 – the second highest in Africa, after Kenya, and well below the global median of R27 879.
These are among the findings in the TransUnion H1 2026 Update: Top Fraud Trends report, which shows that South Africa’s digital fraud landscape has become more complex, with generative AI likely accelerating the scale and sophistication of criminal activity. This has enabled fraudsters to target both consumers and businesses with greater precision and speed.
South African consumers are increasingly facing co-ordinated, identity-driven and cross-channel attacks similar to those seen in mature digital economies. As a result, digital fraud has shifted deeper into the consumer journey: one third (33%) of South African consumers who said they lost money from digital fraud in the last year reported those losses stemmed from third-party seller scams on legitimate ecommerce platforms.
The results indicate that losses are not occurring because consumers transacted in a suspect or unsafe environment – but because fraudsters successfully embedded themselves into environments that appeared credible, familiar and trusted.
“This signals a market where criminals are exploiting established trust, active accounts and verified digital relationships, and is a clear break from global fraud patterns typically dominated by phishing and vishing – fraudulent phone calls or voice messages designed to deceive consumers into sharing sensitive information or sending money,” says Amritha Reddy, senior director of fraud product management at TransUnion Africa. “In South Africa, fraudsters succeed where trust is already established, particularly inside mainstream digital platforms where consumers reasonably expect safety and legitimacy.”
“Criminals are weaponising both consumer trust and emerging technologies,” says Reddy. “As GenAI accelerates the sophistication and scale of criminal operations, the threat landscape is evolving faster than ever for consumers and businesses.
“Addressing this requires a new generation of identity centric defences that combine advanced analytics, adaptive authentication and multilayered digital fraud detection. Organisations must match fraudsters’ technological innovation to stay ahead of rapidly changing schemes.”
Most prominent cause of fraud loss
Percentage reporting losing money to these schemes among South Africans who said they lost funds from digital fraud in the last year.
| Type of Fraud | Percentage of Consumers Reporting Losing Money to Fraud Type Among Those Who Said They Lost Money to Fraud in the Last Year
|
| Third-party seller scams on legitimate ecommerce sites | 33% |
| Social engineering | 26% |
| Account takeover | 24% |
| Stolen credit card or fraudulent charges | 24% |
| Money mule | 23% |
| Identity theft | 22% |
| Phishing (fraudulent emails, websites, social posts, QR codes, etc. meant to steal personal information) | 21% |
| Smishing (fraudulent text messages meant to steal personal information) | 19% |
| Vishing (fraudulent phone calls or voice messages meant to steal personal information) | 16% |
| Unemployment benefits | 15% |
Source: TransUnion consumer survey
Most fraud attempts occur at account login
The suspected digital fraud rate for attempted transactions where the consumer was in South Africa declined from 4.3% in 2024 to 3.0% in 2025, a trend also observed globally. Nevertheless, this decrease does not necessarily indicate reduced criminal activity; rather, it may reflect a shift toward AI-enabled tactics designed to maximise return on investment.
South Africa is one of the few markets where the highest rate of suspected digital fraud attempts happen at account login, with 3% of account login attempts being flagged as potentially fraudulent, compared to 2,4% at account creation and 0,7% of financial transactions. This trend suggests that attackers are increasingly trying to compromise existing accounts, in contrast to other countries globally where new account creation is a key focus for fraudsters.
“This inversion tells a powerful story that criminals in South Africa are now targeting access using compromised credentials, SIM-swap-enabled entry and social engineering to take over existing accounts,” says Reddy. “This means that vendors and financial institutions need to expand their fraud prevention strategies beyond the new customer onboarding phase, continuing to implement verification throughout the consumer lifecycle – but without the unnecessary friction that will see genuine consumers seeking alternative sites.”
Findings from the survey also show that consumers most preferred top feature when choosing whom to transact with online is confidence that their personal data is secure, with 85% of respondents saying it was very important. This was followed by an easy payment process (80%) and ease of filling out forms or applications (72%).
“The fact that security is the top reported feature shows that consumers are willing to accept friction when completing digital transactions, provided it’s clearly linked to protection,” Reddy said. “As a result, security in South Africa is evolving beyond compliance and emerging as a key driver of brand trust and differentiation.”
Government sector most affected by digital fraud attempts
Suspected digital fraud attempts across Africa in 2025 showed fraudsters focusing on very different industries depending on the country, reflecting local digital behaviours and opportunity points.
Globally, the most vulnerable industry was video gaming, where 12,8% of transactions were suspected of digital fraud attempts. Across African countries analysed, gaming also recorded the highest suspected digital fraud rate, driven by Kenya, where 15,6% of gaming transactions were flagged – the highest rate observed for any industry in Africa.
In South Africa, the rate of suspected digital fraud where the consumer was in the country was the most prevalent among government transactions, at 12,5%, highlighting risks tied to public-sector digitalisation.
“Digitalisation has improved access to public services, but it has also created new risks for fraud,” says Reddy. “Fraudsters are leveraging official government branding and service-related messages to impersonate the state and deceive citizens.”
Suspected digital fraud attempts in South Africa, by sector
| Industry | Suspected Digital Fraud Attempt Rate 2025 | Change in volume of suspected digital fraud attempts from 2024 to 2025 |
| Government | 12.5% | +46% |
| Gaming (online sports betting, poker, etc.) | 11.5% | +124% |
| Insurance | 7.8% | +32% |
| Video gaming | 5.5% | -29% |
| Financial services | 5.3% | +16% |
| Communities (online dating, forums etc) | 3.7% | -42% |
| Logistics | 1.9% | -98% |
| Retail | 1.1% | -61% |
| Telecommunications | 0.6% | -94% |
| Travel & leisure | 0.1% | -78% |
“South Africa has entered an advanced fraud phase where criminals exploit trust, operate across channels and target established digital relationships rather than weak entry points. Fraud is increasingly occurring inside legitimate marketplaces and impersonated public services, while risk remains consistently highest at login, as it has been on an annual basis.
“As criminals increasingly weaponise new technologies to carry out sophisticated scams, it’s more important than ever for consumers to safeguard their personal information and to review their credit reports regularly,” says Reddy.
“For businesses, the call to action is clear: fraud strategies must extend beyond compliance and onboarding controls to actively protect trust across the entire digital journey. Organisations that invest in adaptive authentication, identity intelligence and visible security at moments of access will be best positioned to reduce fraud, preserve customer confidence and differentiate their brands in South Africa’s digital economy,” she adds.
TransUnion came to its conclusions about digital fraud based on a global survey of 12 730 consumers in 18 countries and regions from 20 November to 9 December 2025, and intelligence from its fraud prevention solutions. Specific country and regional data in the report includes South Africa, Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, Spain, the United Kingdom, the United States and Zambia.