By Raine St.Claire
47.8 million South Africans - 78.7% of the population - used mobile devices to access the internet In 2022. This upward trend is expected to continue and by 2027 the anticipated trajectory of internet utilisation in South Africa and the ascendancy of mobile devices is expected to grow by 90%.
However, alongside this remarkable industry growth comes a concerning increase in cyber fraud. Identity theft, credit card fraud, online privacy, and scams like phishing are highlighted as major consumer concerns.
In 2023, South African companies reported around 110 cyber security incidents every month.
However, this problem is not unique to South Africa; many developing and developed nations share similar statistics regarding attacks on corporate IT systems. This dynamic risk environment rife with opportunistic fraudsters, underscores challenges both consumers and businesses face in ensuring security and positive online experiences.
In 2022, digital banking fraud in South Africa reached alarming levels, with cybercriminals syphoning off over millions, as reported by the South African Banking Risk Information Centre (Sabric).
Gross losses escalated from R440-million in 2021 to R740.8-million in 2022 — a staggering 68% rise in financial impact.
This surge was particularly attributed to a rise in fraud cases associated with banking applications and internet banking.
The report shed light on the prevalence of social engineering techniques and a notable increase in app-related fraud incidents, which saw a 36% rise in reported cases.