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COMRIC warns against sim swap fraud and digital scams

COMRIC warns against sim swap fraud and digital scams
22-11-24 / Daniel Nkosi

COMRIC warns against sim swap fraud and digital scams

Johannesburg - As International Fraud Awareness Week draws attention to the global threat of cybercrime, digital fraud amongst others, the Communication Risk Information Centre (COMRiC) has issued a warning about a sharp increase in SIM swap fraud and other digital scams affecting South Africans.

These sophisticated schemes, which target individuals and businesses alike, have become a critical concern in the fight against digital fraud.

Advocate Thokozani Mvelase, Chief Executive Officer of COMRIC, has called for renewed vigilance as fraudsters exploit vulnerabilities in mobile network systems to carry out unauthorised SIM swaps. This tactic allows criminals to take control of victims' phone numbers, enabling them to intercept sensitive information such as one-time passwords used for financial transactions. With this access, fraudsters can drain bank accounts, commit identity theft, and wreak havoc on victims' lives.

"This is a direct attack on the trust and security of our digital systems," says Mvelase. "The emotional and financial impact on victims is devastating, and the consequences ripple through families, businesses, and the broader economy."

In addition to SIM swap fraud, there has been a marked increase in phishing emails, social engineering scams, and fake investment schemes designed to exploit unsuspecting individuals and small businesses. COMRiC says South Africans have already suffered significant financial losses in 2024, with SMEs being particularly vulnerable to targeted attacks. These crimes erode confidence in the digital economy, making it imperative to address these threats at every level.

To combat this growing menace, COMRIC is leading the charge through enhanced collaboration with financial institutions, mobile network operators, and law enforcement agencies. These partnerships are focused on strengthening security protocols, implementing biometric and encrypted verification systems, and closing loopholes that fraudsters commonly exploit. At the same time, COMRIC is intensifying its public awareness campaigns to educate individuals and businesses on recognizing and avoiding fraudulent schemes.

"Combating digital fraud requires more than just technological solutions—it demands collective action and a culture of vigilance," notes Mvelase. COMRiC is also encouraging victims to report incidents of fraud immediately through the various network operator helplines, to enable swift investigations and reduce the chances of further criminal activity.

Advocate Mvelase is also urging all South Africans to take proactive steps to protect themselves and their digital identities. This includes staying cautious of unsolicited communications, verifying requests for personal information, and securing devices with strong passwords and two-factor authentication. He also highlighted the importance of reporting suspected fraud as quickly as possible to mitigate financial losses and prevent further harm.

Recent data from the South African Banking Risk Information Centre (SABRIC) reveals that SIM swap incidents accounted for 58% of mobile banking fraud cases in 2023, totalling 5 709 reported incidents. While this reflects a decrease from 75% in 2022, the prevalence remains alarmingly high.

In addition to SIM swap fraud, digital scams have escalated. TransUnion's 2024 State of Omnichannel Fraud Report indicates that 4.1% of all digital transactions in South Africa were flagged as suspected fraud in 2023, marking a 27% year-over-year increase.

The telecommunications sector experienced the highest rate of suspected digital fraud attempts at 15.5%, a 78% increase from the previous year.

"Fraud is a shared problem that affects us all," says Mvelase. "This International Fraud Awareness Week, let us commit to safeguarding our digital lives, fostering a culture of security, and working together to create a safer, more resilient online environment."

 

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