Warning for South Africans: Mobile Banking Apps Targeted by Growing Cybercrime Threats

South Africans who use mobile banking apps are being warned to exercise caution as fraud targeting smartphones and tablets continues to rise. The 2025 KnowBe4 African Cybersecurity & Awareness Report reveals that the increased use of mobile financial services is exposing users to greater risks, with cybercriminals seizing the opportunity to exploit vulnerabilities.

Surge in Mobile Banking Use: A Double-Edged Sword

According to the report, South Africa has seen a sharp rise in mobile banking, with 50% of respondents using banking apps—significantly higher than the continental average of 36%. With this increase in digital financial transactions, however, comes an expanded attack surface for cybercriminals. While mobile banking offers convenience, it also leaves users more vulnerable to fraud.

Smartphones and Casual Security Habits: A Dangerous Combination

The report highlights that mobile devices are often used in less secure environments compared to traditional computers. Many users conduct financial transactions on unsecured or second-hand phones, increasing the likelihood of falling victim to cybercrime. The casual nature of phone use, coupled with weaker security practices, makes mobile devices a prime target for hackers and fraudsters.

Mobile Phone Theft: A Growing Concern

One of the most alarming trends identified in the report is the high rate of mobile phone theft in South Africa. On average, 189 phones are stolen every day, primarily targeting women. Between April 2017 and March 2023, over 400,000 mobile phones were reported stolen. Unfortunately, only 29% of these phones were blacklisted by service providers, leaving stolen devices vulnerable to misuse.

Criminals are increasingly targeting banking apps and personal data stored on stolen devices. The South African Banking Risk Information Centre (SABRIC) has warned that thieves often use stolen phones to access banking apps, personal identification documents, and even email accounts. This level of access amplifies the risk of identity theft and financial fraud.

Types of Fraud on the Rise

The Southern African Fraud Prevention Services (SAFPS) has flagged a notable rise in mobile phone thefts specifically aimed at exploiting banking apps. Fraud types such as APP fraud, phishing, smishing, vishing, and SIM swap fraud have become increasingly common. Cybercriminals now have access to “fraud-as-a-service” platforms, which enable them to easily execute large-scale fraud operations.

In some cases, criminals are also using physical threats, coercing or kidnapping victims to forcibly access their banking apps. The threat of fraud-as-a-service combined with physical threats makes the situation even more dangerous.

Key Steps to Protect Yourself

In light of these threats, it is essential for South Africans to take immediate action if their phone is stolen. The SAFPS recommends that users first contact their bank to de-link their banking app from their accounts. This step ensures that no further unauthorized transactions can take place. Only after securing their financial data should users contact their mobile service provider to cancel the SIM card.

Beyond these steps, strong security practices are crucial for mobile banking users. Setting strong passwords, enabling two-factor authentication, and regularly updating apps can significantly reduce the risk of fraud. Being vigilant about suspicious activity on your device is also a key part of staying safe in the digital age.

Safeguarding Your Financial Data

As mobile banking becomes an integral part of daily life for South Africans, it is more important than ever to stay informed about potential threats and practice good cybersecurity hygiene. With cybercriminals becoming increasingly sophisticated, users must take proactive steps to protect their data, ensuring they can continue to enjoy the convenience of mobile banking without falling victim to fraud.

By remaining vigilant and following the best practices for mobile security, South Africans can help safeguard their financial information in a rapidly evolving digital landscape.

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