- The Banking Division of the National Financial Ombud recovered R53 million for consumers during 2025.
- Phishing, SIM swap, impersonation and remote access scams are driving a surge in digital banking fraud.
- The Ombud investigates whether a bank’s conduct contributed to a customer’s loss and provides free dispute resolution.
The Banking Division of the National Financial Ombud managed to recover R53 million for consumers in 2025, as digital banking fraud and unauthorised transaction disputes kept rising across South Africa.
The Ombud said this recovery shows the growing financial impact of ever more sophisticated scams. Criminals are using phishing, smishing, vishing, SIM swaps, impersonation scams, remote access software and fake investment schemes to target bank customers.
Lead Ombud Nerosha Maseti said many victims think they are dealing with real bank employees, only to find out later that their current accounts, savings, investment funds and available credit have been wiped out.
“Many victims lose not only the money in their current accounts, but also savings, investment funds, unused overdraft facilities and available credit. The financial and emotional impact can be severe and may affect entire families,” she said.
Bank conduct under scrutiny
Maseti said the Ombud’s investigations do not just focus on whether a crime happened. Instead, they look at whether the bank acted fairly, reasonably and according to its legal and contractual obligations before and after the fraud was reported.
Investigators review account records, transaction data, internet and mobile banking logs, authentication records, device information, audit trails, correspondence, fraud reports and call recordings. This helps them figure out how disputed transactions started and whether the right fraud prevention measures were in place.
The Ombud can look into disputes involving transfers between participating banks. However, it cannot force independent third-party organisations such as cryptocurrency or gambling platforms outside its jurisdiction to provide information.
Free recourse for consumers
Set up in March 2024, the National Financial Ombud gives consumers a free, independent way to resolve complaints involving banks, credit providers and insurers.
Maseti urged consumers to report fraud to their bank right away and to the South African Police Service if a crime has taken place. She said people should give their bank a chance to resolve the complaint before taking it to the Ombud.
She added that the Ombud’s effectiveness is not about how many decisions go in favour of consumers or banks. What matters is that every complaint is assessed on its own merits and decided independently.
“While some criticism is inevitable from parties disappointed by decisions that could not be made in their favour, the value of the NFO’s work is reflected in the tangible outcomes it delivers,” she said.
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