South Africans and Their Assets Under Siege: FSCA Boosts Fight Against Online Scams

R200 million upgrade to watchdog’s tech and talent as crypto fraud escalates

Online scams are spiraling in South Africa, and the country’s top financial regulator has had enough. The Financial Sector Conduct Authority (FSCA) is pouring R200 million into what it calls the “largest IT reorganisation” in its history to tackle the explosion of online fraud, crypto scams, and deep fakes that are targeting unsuspecting South Africans.

Unathi Kamlana, FSCA Commissioner, says this massive overhaul will unfold over the next 18 months and includes the hiring of specialists to crack down on crypto-specific crimes. The regulator is also expanding its team to over 700 people, with a sharp focus on digital surveillance and enforcement.

Crypto Chaos and Deep Fake Dangers

South Africa has become fertile ground for digital deception. Between 2022 and 2023, the country experienced a 1,200% surge in deep fake incidents, according to verification platform Sumsub, far higher than the 450% rise seen in the rest of the Middle East and Africa.

These virtual scams aren’t just theoretical. South Africa was at the heart of some of the biggest crypto heists in recent history. In 2021, Africrypt vanished with 70,000 Bitcoin, and by 2023, a fraudulent crypto scheme saw a record $3.4 billion fine issued by a U.S. court, all traced back to operations rooted in South Africa.

Watchdog’s Bite: Less Bark, More Impact

The FSCA recorded 1,350 enforcement actions in the year through March, imposing R120 million in fines. While this is significantly lower than the previous year’s record R943 million, Kamlana insists it’s a sign of progress.

“We’re targeting those with the biggest impact,” he said, adding that the agency’s efforts have proven to be a “deterrent” for would-be fraudsters. The FSCA is now focusing its energy on the most dangerous operators in the financial underworld.

Why This Matters to Everyday South Africans

South Africans are increasingly falling victim to online scams, from fake investment platforms to manipulated deep fake videos, that drain bank accounts and destroy trust in digital finance. The growing sophistication of these scams has prompted urgent calls for stronger regulatory oversight.

Kamlana’s promise to beef up supervision with advanced tech and skilled investigators is a signal that the FSCA wants to be more than just a passive observer. It aims to get ahead of the cybercriminal curve and restore faith in South Africa’s financial systems.

A Country Under Digital Siege

As South Africa cements its place as a key player in the global fintech and crypto space, it also becomes a magnet for fraud. Without aggressive, coordinated enforcement, the country risks becoming a cautionary tale rather than a leader in innovation.

Whether this R200 million transformation turns the tide remains to be seen. But one thing is clear: South Africa is finally putting its digital foot down.

{Source: BusinessTech}

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