Imposter or impersonation scams are on the rise in South Africa. Recent reports highlight a significant increase in sophisticated fraud schemes involving criminals posing as legitimate authorities, service providers, or individuals to deceive victims and extract money or personal information.
Examples include impersonating the South African Revenue Service (SARS), police officers, government departments, or banks. These scams often involve threats, urgent payment requests, or the promise of large sums of money. According to reports, digital banking fraud has seen a particularly alarming increase, with a 45% surge in incidents and a 47% rise in related financial losses during the past year.
Key Takeaways:
- Impersonation scams are increasing rapidly in South Africa, with criminals posing as SARS, police officers, government departments, and banks to extract money or personal information.
- Digital banking fraud has seen a 45% surge in incidents and a 47% rise in related financial losses over the past year.
- The Southern African Fraud Prevention Service (SAFPS) reports a 32% overall increase in fraud incidents in 2024, with banking fraud accounting for 45% of these.
- In the past two months, iTOO Special Risks received three impersonation fraud claims totalling R589 000.
- Banks will never ask for PINs over the phone, and the South African Police Service will never execute arrest warrants over the phone.
- Verification is the most effective defence. Always confirm suspicious requests in person or through official channels before transferring money or sharing personal information.
- Scammers exploit fear of liberty, money, and reputation to pressure victims into acting quickly without thinking.
How Are Impersonation Scams Affecting South Africans?
The Southern African Fraud Prevention Service (SAFPS) reports a 32% increase in reported fraud incidents in 2024, with banking fraud accounting for 45% of these incidents. Laykin Abrahams, a claims specialist at iTOO Special Risks, notes that this trend is underscored by the influx of claims the insurer has seen in recent months, particularly in the personal lines segment.
What Do Real Impersonation Scam Claims Look Like?
In the past two months, iTOO has received three claims totalling R589 000 from clients who were victims of impersonation fraud. “In one case, scammers posed as police officers or members of law enforcement and called the insured, claiming there was a warrant for their arrest and required bail money to be sent via electronic funds transfer (EFT). That claim amount was for R183 000,” she says.
“In another case, the insured joined a WhatsApp group, thinking it was from one of the major banks and invested money. That claim amount was R344 000. In a second case involving the same bank, scammers called the insured, claiming there was suspicious activity on their account. They instructed the insured to transfer funds from their legitimate account to a new account supposedly set up by the bank to secure it from the perpetrators. That claim amount was R62 000.”
Read more about how to report fraud and impersonation scams in South Africa.
How Can You Protect Yourself From Impersonation Scams?
Abrahams explains that verification goes a long way in preventing these scams and warns that people should always be on the lookout for potential criminal activity, especially when contacted to transfer money or provide personal information. “Transferring funds into an account as prompted by someone online is never wise. If you receive a call about suspicious activity on your account, it’s always best to visit the bank in person to verify the information,” she says. “While it may seem old-fashioned, it’s safer than taking risks online. We’ve seen an increase in investment scams on platforms like WhatsApp, where people join groups thinking they are legitimate and end up losing money. Verification goes a long way in preventing these scams.”
Sadiyah Mather, claims specialist at iTOO, cautions that people should always do their own investigative work and not be bullied or forced into taking action based on information provided by scammers.
“Always verify the details, do the checks, and seek advice from someone you trust who can assist in such situations. Banks will never ask for PINs over the phone, and any authentication usually involves prompts through your banking app, requiring biometrics for approval,” she says.
Read SARS guidance on how to identify and report SARS impersonation scams.
What Should You Know About the Digital Arrest Scam in South Africa?
“Regarding the digital arrest scam, the South African Police Service will never execute arrest warrants over the phone. Arrest warrants must be executed physically, and they won’t call you to inform you of alleged crimes. It’s easy for scammers to create fake documents using PDF editors, adding official-looking logos, and concocting false claims. These tactics exploit fear. Fear for liberty, money, and reputation because scammers understand that people want to avoid trouble,” Mather says.
Read the South African Police Service’s official guidance on scams and fraud awareness.
Learn more about personal cyber insurance and fraud protection for South Africans.
This content provides guidance for South African consumers and individuals navigating the growing threat of impersonation scams and digital fraud. For specific cyber insurance or fraud cover advice tailored to your situation, consult qualified insurance professionals familiar with South African regulations and market conditions.
Frequently Asked Questions
An impersonation scam involves criminals posing as legitimate authorities, service providers, or individuals, such as SARS, police officers, or banks, to deceive victims into transferring money or disclosing sensitive personal information.
Impersonation scams are increasing rapidly. The SAFPS reports a 32% overall increase in fraud incidents in 2024, with banking fraud accounting for 45% of these. Digital banking fraud specifically has seen a 45% surge in incidents and a 47% rise in related financial losses.
No. The South African Police Service will never execute arrest warrants over the phone. Arrest warrants must be executed physically. Any call claiming otherwise is a scam.
No. Banks will never ask for PINs over the phone. Legitimate authentication typically involves prompts through your banking app, requiring biometrics for approval.
Do not transfer any money or share personal information. Verify the request independently through official channels, visit your bank in person if needed, seek advice from a trusted person, and report the incident to the SAFPS or your bank immediately.