Fraud linked to the telecommunications sector cost South Africa roughly R5.3 billion in 2024, with SIM-swap, subscription, and identity fraud found to be the most prominent threats.
This is according to the Communications Risk Information Centre (Comric) 2025 Telecommunications Sector Report.
The report points out how the telecommunications sector has become intertwined with the rest of the South African economy, making it a prime target for criminals who launch attacks on other sectors.
It says that SIM swap and synthetic identity fraud “are now recognised as a gateway to a broader web of crime,” such as mobile banking fraud, impersonation, and digital extortion.
SIM swap fraud is when a malicious party gains access to enough personal information to impersonate a subscriber who holds a phone number.
This is done to hijack the victim’s number and intercept sensitive communications, including one-time PINs for transactions and banking credentials.
As a result, Comric said that roughly 60% of mobile banking fraud is directly related to crimes involving SIM swaps.
Information provided by South African network operators showed that 3,600 SIM swaps were processed over the past four months, of which 108 (3%) were found to be fraudulent.
The report adds that the average financial loss per SIM swap fraud incident is estimated to be around R10,000, with some cases exceeding R500,000.
However, while the financial losses from SIM swap fraud are declining, losses from digital fraud are rising, increasing from R438 million in 2021 to R1 billion in 2023.
Comric CEO Thokozane Mvelase told the Money Show that subscription fraud is currently one of the telco sector’s most pressing types of fraud.
“This is where syndicated groups purchase services from telcos using fraudulent information. However, they also target vulnerable citizens looking for work to help commit the attack,” Mvelase said.
Banks warning about telecoms scams
Another attack used by fraudsters mentioned in the report is phishing, which several South African banks have warned their clients to be vigilant about.
Phishing is a type of scam where criminals attempt to manipulate targets into revealing sensitive information using social engineering techniques.
Like fishing, the idea is to attempt this attack on many targets, hoping that one eventually “bites.” An example is a phishing email fraudulently posing as Capitec that is sent to thousands of people.
This article originally appeared on My Broadband. Click here to read the full story.