South Africa’s telecom sector is under fire, and fraud is costing the country big. A new report says the industry lost a staggering R5.3 billion (≈ $291.5 million) in 2024 to scams like SIM swaps, fake subscriptions, and identity theft. That’s according to the 2025 Telecommunications Sector Report from the Communications Risk Information Centre (Comric).
The report makes it clear: telco fraud isn’t just a tech issue; it’s become deeply linked to broader crimes like banking fraud, impersonation, and even digital extortion. SIM swap scams alone account for around 60% of mobile banking fraud in the country. That’s when fraudsters hijack your number to intercept OTPs and banking info.
Mobile operators recorded 3,600 SIM swaps in just four months, with 108 flagged as fraudulent. While most incidents result in losses around R10,000 (≈ $550), some victims have lost more than R500,000 (≈ $27,500). Digital fraud overall has skyrocketed, from R438 million (≈ USD 24.1 million) in 2021 to a massive R1 billion (≈ USD 55 million) in 2023.
Comric’s CEO, Thokozane Mvelase, says subscription fraud is another major concern. Syndicates use fake details, or worse, pay unemployed South Africans with valid IDs and bank accounts, to open mobile contracts. These citizens, often desperate for money, end up unknowingly helping criminals stay anonymous.
Then there’s phishing – those dodgy emails, calls, and texts trying to trick people into giving up personal info. South African banks are warning customers to stay sharp. Scammers are getting creative, even using QR codes now in “quishing” attacks. Banks like Capitec have started rolling out tools in their apps to help users verify callers and avoid getting scammed.
This article originally appeared on Tech Point. Click here to read the full story.