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AI-Powered Scams on the Rise: SABRIC Warns South Africans to Stay Vigilant
The South African Banking Risk Information Centre (SABRIC) has issued a stark warning about the surge in AI-powered scams targeting bank customers. Criminals are using advanced technologies like deepfake videos, voice cloning, and AI chatbots to impersonate banks and financial institutions, making it increasingly difficult to distinguish between legitimate and fraudulent communications.
The Rise of AI-Driven Fraud
SABRIC, which works closely with banks, law enforcement, and regulators, has highlighted the growing sophistication of these scams. Fraudsters are leveraging AI to create highly convincing impersonations of bank representatives, luring victims into fake investment schemes and stealing personal information and money.
One alarming trend is the proliferation of fake investment apps and fraudulent social media schemes. Standard Bank recently flagged a scam involving a WhatsApp group promoting SBG SI Trader, a fake investment app designed to steal data and funds. The app falsely claimed affiliation with Standard Bank and even referenced its FSCA license and a real employee to appear legitimate.
Real-Life Scams and Their Impact
The consequences of falling victim to these scams can be devastating. In one case, a victim lost over R6 million after being tricked into investing through a fake app that claimed to trade on the Johannesburg Stock Exchange (JSE). The scammers, posing as bank employees, used manipulated digital communication channels to gain the victim’s trust and siphon the funds.
Another individual lost more than R100,000 after being deceived by a fraudulent broker who created a professional-looking website and used social engineering tactics to convince the victim to invest. Despite promises of easy withdrawals, the victim lost everything.
The Role of Deepfakes and Voice Cloning
SABRIC CEO Nischal Mewalall warned that AI-driven scams are now so advanced that even the most cautious individuals can be deceived. “Criminals can convincingly replicate voices, craft realistic emails, and even develop entire fake apps to steal personal information and money,” Mewalall said. He urged South Africans to always verify communications by contacting their bank through official channels.
Impersonation Fraud on the Rise
The Southern African Fraud Prevention Service (SAFPS) reported a 337% increase in impersonation fraud last year compared to the previous year. SAFPS CEO Manie van Schalkwyk described the rise as alarming, noting that South Africans are becoming prime targets for fraudsters. “Criminals are increasingly opening or taking over accounts using stolen identities, making identity theft one of the fastest-growing threats in the country,” he said.
How to Protect Yourself
SABRIC has outlined several steps South Africans can take to protect themselves from AI-powered scams:
- Be Skeptical of Too-Good-to-Be-True Offers: If an investment opportunity promises “guaranteed” returns, it’s likely a scam.
- Download Apps Only from Official Stores: Never download apps from links sent via WhatsApp, SMS, or email. Always use official app stores like Google Play or the Apple App Store.
- Verify Communications: If someone claims to be from your bank, hang up and contact the bank directly through its official contact number.
- Never Share Sensitive Information: Banks will never ask for your PIN, one-time password (OTP), or banking credentials. Legitimate bank executives do not sell or promote investment opportunities to the public.
- Report Suspicious Activity: If you suspect fraudulent activity, report it immediately to your bank and the relevant authorities.
AI-powered scams are a growing threat to South African bank customers, with criminals using deepfakes, voice cloning, and fake apps to steal money and personal information. As these scams become more sophisticated, it’s crucial for individuals to remain vigilant and follow SABRIC’s guidelines to protect themselves. By staying informed and cautious, South Africans can safeguard their finances and avoid falling victim to these increasingly advanced fraud schemes.
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