Consumer fraud rises in South Africa, scammers becoming more sophisticated

Consumer fraud was the second most experienced crime by individuals according to the latest Governance, Public Safety and Justice Survey (GPSJS) 2024/25 report released by Statistics South Africa (Stats SA). 

The report, released on Tuesday, also revealed that housebreaking was the most common crime experienced by households in South Africa.  

Consumer fraud involves deceptive practices in the quality or quantity of goods/services, such as advance-fee scams (e.g., R99 card scam, 419 scams, online shopping fraud). 

Individuals over the age of sixteen were asked if they experienced consumer fraud a year before the survey.

Consumer fraud victims are more often female (1.3%) than male (1.2%). Higher education (4.3%) and secondary schooling (1.2%) correlate with increased victimisation. Metro residents (1.8%) are also more susceptible than non-metro residents (0.9%).

Victims of consumer fraud not reporting incidents to the police decreased from 69.2% in 2023/24 to 65.1% in 2024/25. Conversely, those reporting all incidents rose by 6.5%, from 27.2% to 33.7%, over the same period.

Consumer fraud incidents rose from 493,000 in 2020/21 to 844,000 in 2021/22, then fell to 487,000 in 2022/23. They increased again to 552,000 in 2023/24 and further to 811,000 in 2024/25.

Consumer fraud cases (victims) rose from 321,000 in 2020/21 to 376,000 in 2021/22, with continued increases through 2024/25.

Police reports of incidents rose from 41.2% in 2020/21 to 44.2% in 2021/22. Consumer fraud reporting then fell to 38.1% in 2022/23 and 30.7% in 2023/24, before increasing by 4.2% in 2024/25.

Southern African Fraud Prevention Service (SAFPS) CEO Manie van Schalkwyk said: “The Stats SA report shows there was an increase observed in fraud incidents in the last few years, which is in line with what we are seeing. Fraud in general is increasing, as technology advances and tactics become more sophisticated.”

Van Schalkwyk said some consumers choose not to report an incident for various reasons, including not knowing where to go, distrust, or embarrassment. Therefore, reporting numbers may not be a true reflection of the fraud occurring. 

“We encourage consumers not to feel embarrassed to report incidents to the relevant authorities, the tactics being used are so advanced and it can happen to anyone. Data gathered from these reports assist organisations to build intelligence to help fight fraud,” Van Schalkwyk said. 

He said the most effective layer of defence is for consumers to educate themselves about fraud tactics and prevention methods. 

SAFPS tips:

• Don’t share sensitive data: Reputable organisations won’t ask for banking details via email or SMS.
• Research and verify: If a deal seems too good to be true, it probably is. Check with the company directly through official channels.
• Use official channels: Avoid clicking links in texts or emails. Go directly to the official website.
• Beware of urgency or intimidation: Reputable organisations don’t use fear tactics. If a call feels like a scam, end it and call the organisation directly.
• Protect yourself: Use strong passwords, avoid public Wi-Fi for sensitive info, and enable multi-factor authentication.

Mancosa academic postgraduate coordinator Dr Trevonia Nihal said these statistics are a growing concern, mixed with cautious optimism. 

“Consumer fraud is on the rise, with incidents reaching 811,000 in 2024/25. Notably, individuals with higher education, women, and residents of metro areas are disproportionately affected, indicating that fraudsters are increasingly targeting digitally savvy consumers. While reporting rates have improved modestly, with 33.7% of victims reporting all incidents, underreporting remains a significant challenge at 65.1%, hindering effective enforcement,” Nihal said. 

She said the disparity between the number of incidents and affected individuals suggests many victims experience fraud repeatedly. 

“These trends underscore the urgent need for enhanced consumer education, more accessible reporting mechanisms, and stronger law enforcement to better protect all consumers,” Nihal said. 

thobeka.ngema@inl.co.za