- Fraud-related complaints in the NFO’s non-bank Credit Division rose from 124 in 2025 to 181 in 2026.
- Fraudulent transactions can result in debt collection, interest, adverse credit information and SAFPS listings.
- Consumers are urged to report suspected fraud immediately and formally dispute transactions they did not authorise.
It seemed like a routine phone call, but for one consumer it would lead to a debt of nearly R18 500 she never agreed to.
She received a call from someone claiming to be a retailer representative, warning her about suspicious activity on her store credit account and offering to help. Trusting the advice, she followed the instructions. Soon afterwards, an online transaction for R18 488.80 was processed in her name even though she never authorised it.
When she disputed the transaction, the credit provider found it had been approved using a one-time password sent to her registered cellphone number. There was no sign of a SIM swap or any system breach. Instead, she had been deceived into giving away her OTP during a vishing scam, where fraudsters use convincing phone calls to obtain sensitive information.
The National Financial Ombud Scheme South Africa (NFO) agreed she was a genuine victim of fraud. However, because the transaction was authenticated using her own security details and there was no evidence of negligence or a system failure on the part of the credit provider, the Ombud found no legal or fair reason to reverse the transaction or cancel the debt.
This case comes as the NFO reports a 46 percent increase in fraud complaints in its non-bank Credit Division, with cases rising from 124 in 2025 to 181 in 2026. That is an increase of 57 complaints in just one year.
Nerosha Maseti, Lead Ombud for Banking and Credit at the NFO, says criminals are now more interested in stealing information and security credentials than physical bank cards.
“Fraudsters are no longer necessarily stealing the physical card. They are increasingly targeting the information, credentials and trust that sit behind the transaction,” Maseti says.
Fraud can leave consumers with debt
According to the NFO, fraud in the non-bank credit sector includes card not present transactions, phishing, vishing, identity theft, fraudulent loan applications, stolen card details and the misuse of one-time passwords.
A single fraudulent transaction can cause problems that go far beyond the original purchase. Consumers could end up with growing balances, interest charges, debt collection and disputes over whether they really authorised a transaction or credit agreement. In some cases, this can even affect their credit record or lead to a SAFPS listing.
“We are seeing the nature of credit complaints change. Consumers are increasingly approaching us not just about balances or collection practices, but about debts arising from transactions they never authorised. That is a serious consumer protection issue,” Maseti says.
“The fraudster may make the transaction, but the consequences can follow the consumer in the form of debt, collection activity and potentially adverse credit information,” she adds.
Do not ignore a fraudulent transaction
The NFO warns consumers not to ignore an unauthorised transaction just because they did not make the purchase themselves. “If an unauthorised transaction appears on your account, report it immediately and keep a record of everything you do to resolve it,” Maseti says.
“Do not assume that because you did not make the purchase, the problem will automatically disappear. Engage the credit provider, challenge the transaction formally and make sure you get a written record of the dispute.”
Consumers should stop communicating with anyone they suspect of being a fraudster, report the problem through official credit provider channels and secure any accounts or devices that may have been compromised.
They should formally dispute the transaction or credit agreement, ask for a reference number and keep any evidence, such as statements, SMS messages, emails, screenshots and WhatsApp messages.
If the matter is not resolved, consumers can approach the NFO if the complaint falls within its area of responsibility.
Credit providers must respond fairly
The NFO says credit providers should make it easy to report fraud, investigate disputed transactions quickly and keep all relevant evidence. They should also communicate clearly with consumers and treat collection activity fairly while disputes are being resolved.
“A consumer who has just discovered that someone has used their credit facility fraudulently should not have to become a forensic investigator to be heard,” Maseti says.
The NFO’s services are free for consumers. Complaints should first be lodged with the relevant credit provider before being taken to the Ombud.
You can contact the NFO on 0860 800 900, through WhatsApp on 066 473 0157 or by email at info@nfosa.co.za.
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