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South Africa has recorded the highest rate of suspected digital fraud in Africa, driven by a sophisticated wave of cybercriminals using artificial intelligence to infiltrate platforms consumers already trust.
According to new data from TransUnion, 3.0% of all digital transactions involving South African consumers in 2025 were flagged as suspected fraud. While this marks a decrease from 4.3% in 2024, security researchers warn this drop does not indicate a safer digital environment.
Instead, it reveals a dangerous pivot, fraudsters are abandoning high-volume, crude scams in favour of highly targeted, AI-powered attacks that are harder to detect and far more successful.
The global cybercrime industry is undergoing a massive technological upgrade. Generative AI has lowered the barrier to entry, allowing criminals to clone voices, generate realistic images, and automate personalised social engineering campaigns.
“The threat landscape is evolving faster than ever for consumers and businesses,” noted Amritha Reddy, senior director of fraud product management at TransUnion Africa. Fraudsters are prioritising quality over quantity, actively exploiting South Africa’s mature e-commerce market and advanced banking sector.
The most alarming shift is where these attacks are happening. Today, consumers are being defrauded inside platforms they already use and trust.
33% of South Africans who lost money to digital fraud were deceived by third-party sellers on legitimate online marketplaces, bypassing traditional warnings to avoid suspicious websites.
Suspected fraud peaked during account login attempts, indicating criminals prefer to hijack existing trusted accounts via stolen passwords, SIM swaps, or AI-driven social engineering rather than create fake ones.
As public services digitise, government-related transactions recorded the highest suspected fraud rate across sectors at 12.5%, revealing a critical vulnerability in state digital infrastructure.
The financial toll on consumers is severe. The median reported loss for a South African victim now stands at R11,055 ($600), the second-highest in Africa after Kenya.
Consequently, 85% of South African consumers now cite data security as their top priority when transacting online. As AI makes scams indistinguishable from legitimate interactions, the battle has moved beyond identifying fake emails.
The next generation of cybercrime is targeting identity and trust itself, making robust, continuous security a necessary competitive advantage for Africa’s expanding digital economy.
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