Financial ombud's banking division returns over R60m to consumers as fraud complaints surge

The National Financial Ombud (NFO) Banking Division announced on Monday that it has returned more than R60 million to consumers in 2025, largely through rulings and settlements linked to banking fraud and service failures.

The NFO said this has reinforced the role of independent dispute resolution in restoring trust in the financial system.

The milestone was achieved under the leadership of Lead Ombud, Nerosha Maseti, with the Banking Division resolving thousands of disputes between consumers and banks during the year.

The NFO said the refunds had a tangible, life-changing impact on affected consumers and underscored the importance of accountability and fair treatment across the banking sector.

According to Maseti, the bulk of the R60m paid back to consumers stemmed from fraud-related cases, particularly involving digital channels.

However, Maseti said recommendations have also been made where it was found that the service by some banks was not up to standard or in line with the principles of treating customers fairly.

Maseti said the Banking Division stands as a powerful example of accountability inaction, driving confidence, integrity, and justice in financial services.

“Our work is not only about resolving individual complaints; its about driving improvements that benefit all consumers,” said Maseti.

“By holding banks accountable and promoting fair treatment, weare helping to create a more transparent and responsible financial landscape.”

Beyond monetary compensation, the NFO’s interventions resulted in non-financial relief for many consumers.

These included the return of repossessed vehicles, the writing-off of debt, including confirmation of prescribed debt and correction of interest overcharging, and measures to prevent the sale of properties at auction.

The NFO said such outcomes helped reduce financial strain on over-indebted households while prompting banks to review and strengthen internal processes and controls.

Fraud complaints once again dominated the caseload in 2025. Mobile and internet banking fraud together accounted for 39% of all complaints received by the Banking Division, with online banking fraud complaints rising by 15% compared with 2024.

Maseti said as technology and artificial intelligence (AI) evolve, so too do fraudsters’ tactics.

warned that as banks and consumers increasingly rely on digital platforms, fraudsters are becoming more sophisticated, often leveraging AI to impersonate bank officials.

In some cases, scammers are able to clone bank telephone numbers, making it extremely difficult for consumers to distinguish between legitimate calls and fraudulent ones. The NFO urged consumers to remain vigilant and sceptical of unsolicited requests to move funds, even when communications appear authentic.

Collection-related complaints also remained elevated, reflecting the financial pressures faced by many households amid high living costs and debt burdens.

The NFO said a significant number of consumers approaching the Banking Division were over-indebted, often seeking relief from aggressive collection practices or disputing the manner in which credit had been granted.

With the festive season approaching, the Banking Division issued a strong reminder to consumers to act responsibly when applying for credit. Under the National Credit Act, credit providers are required to conduct affordability assessments, but consumers are equally obliged to provide truthful and complete information.

Maseti noted that the NFO frequently receives complaints alleging reckless lending, only for investigations to reveal that consumers themselves had supplied incorrect or misleading information during the application process.

“The Banking Division often receives complaints where consumers allege that banks have granted them credit recklessly, however, after investigation it becomes clear that consumers provided information to the banks themselves or confirmed that all the information used in the application was true and correct,” Maseti said.

She said that the consequences of providing false information can be severe, warning that applications may be rejected, consumers could face legal consequences for misrepresentation, and they may be listed on the Southern African Fraud Prevention Services database.

Importantly, she said consumers who provided false information cannot later rely on a reckless credit defence.

Looking ahead to 2026, the NFO Banking Division said it would continue to innovate and strengthen its services in response to an evolving financial and technological landscape. The rise in digital fraud, in particular, has sharpened the focus on consumer education, early intervention and systemic improvements within banks.

“2025 has been a year of active engagement and growth for our division,” Maseti said.

“The rise in mobile banking and online fraud highlights the need for consumers to remain vigilant. Our office is committed to supporting consumers, promoting transparency, and ensuring financial safety in a rapidly evolving technological landscape.”

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