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Banks (Finance)

Digital Banking Fraud Complaints Surge by 73% in a Year, NFO Warns of Virtual Card Risks

Strategic Insights

— 1 min read

The National Financial Ombud Scheme (NFO) has reported a significant increase in digital banking fraud complaints, with a staggering 73% year-on-year rise from January to May 2024 and 2025. The surge in complaints reflects the growing adoption of virtual cards, which offer enhanced convenience and security but are not immune to fraud. NFO lead ombud for banking and credit, Nerosha Maseti, warns that consumers must remain vigilant and safeguard their confidential banking credentials.

Key Takeaways:

  • Digital banking fraud complaints rose by 73% from 1,436 to 2,483 between January and May 2024 and 2025, respectively.
  • Virtual card complaints outnumbered ATM-related complaints by 3,350 between January 2024 and May 2025.
  • Most virtual card compromises stem from unauthorised access to a customer's banking app, often through techniques such as vishing, smishing, and phishing.
  • Consumers are responsible for safeguarding their confidential banking credentials, and banks will never request this information.
  • Nerosha Maseti highlights the importance of enabling Multi-Factor Authentication, using biometric verification or OTPs for added security.
  • Suspected fraud must first be reported to the bank, which is the only entity able to block or recover funds.

Statistics:

  • 2,483 digital banking fraud complaints were recorded between January and May 2025, a 73% increase from 1,436 in 2024.
  • Virtual card complaints outnumbered ATM-related complaints by 3,350 between January 2024 and May 2025.
  • 237 ATM card complaints were recorded in January 2024, increasing to 332 in January 2025.

Sources:

  • "NFO Warns of Virtual Card Risks as Digital Banking Fraud Complaints Surge" on Business Day (exact date not specified)
  • "Virtual cards offer enhanced convenience and security, but NFO warns of risks" on Business Live (exact date not specified)
  • "R500,000 heist: NFO finds no grounds to claim reimbursement" on Business Day (exact date not specified)
  • "Tips to protect your virtual card" on the National Financial Ombud Scheme (exact date not specified)

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