Your bank account may be your most exposed asset

Johannesburg - For most South Africans, digital banking has become second nature. We pay accounts from our phones, shop online, book holidays, transfer money to family and friends and invest through banking apps - all in a matter of seconds. Unfortunately, criminals have become just as comfortable operating in this digital world.

Michael Whitehead of Aon South Africa says that today's fraudsters are no longer relying solely on sophisticated hacking techniques. “Instead, many scams exploit something far more accessible: human trust. Convincing phishing emails, fake banking messages, fraudulent WhatsApp conversations, AI-generated voice calls, bogus online stores and scam property rentals are designed to trick people into authorising payments or revealing sensitive banking information,” he explains.

According to the South African Banking Risk Information Centre (SABRIC), digital banking fraud remains the country's fastest-growing financial crime. In 2024, digital banking fraud accounted for more than 65% of all reported banking fraud incidents, with losses exceeding R1.4 billion[1]. Most of these incidents resulted from criminals using social engineering tactics to manipulate victims, rather than weaknesses in banking platforms themselves.

It's Not Always a Hacked Bank Account

Many people assume cybercrime only occurs when criminals “hack” into an account, but the greatest financial losses often happen when victims are manipulated into transferring money themselves.

• Common examples include:
• Paying for accommodation that doesn't exist.
• Purchasing goods advertised on fake online marketplaces.
• Paying a fraudulent supplier after an email invoice has been intercepted and altered.
• Transferring funds into an account using incorrect banking details supplied by scammers.
• Falling victim to phishing, vishing (voice phishing) or smishing (SMS phishing) attacks.
• Losing access to banking profiles following SIM swap or identity theft fraud.

“In many of these cases, the payment was authorised by the account holder, making recovery of the funds difficult or, in some cases, impossible,” says Whitehead.

Why Prevention Is Only Part of The Solution

Banks invest heavily in cybersecurity and consumers are encouraged to follow good digital safety practices, including enabling multi-factor authentication, verifying payment details independently and never sharing passwords or One Time Password (OTP) Personal Identification Numbers (PIN).

However, even the most vigilant individuals can be caught by increasingly sophisticated scams. “Artificial intelligence is making fraudulent emails, websites and even voice impersonations far more convincing than in the past, making it harder to distinguish legitimate communication from criminal activity. While good cyber hygiene reduces the likelihood of becoming a victim, it cannot eliminate the risk entirely,” warns Whitehead.

Closing The Protection Gap

Most people insure their homes, vehicles and valuable possessions, yet few consider protecting the money held in their bank accounts against fraudulent electronic transfers.

“Funds Protect is designed to insure against irrecoverable losses from a personal bank account caused by a fraudulent funds transfer, whether authorised or unauthorised, by a third party. Cover applies once the funds cannot be recovered from the financial institution or responsible third party, subject to the policy terms and conditions,” Whitehead explains.

Depending on the circumstances of the claim, the policy may respond to incidents involving:

• Email interception fraud
• Identity theft
• Online banking fraud
• EFT and deposit scams
• Phishing, vishing and hacking attacks
• Fraudulent invoices
• SIM swap fraud
• Online shopping scams
• Holiday booking scams
• Fake classified advertisements, subject to policy limits and conditions.
• Bogus property rental scams
• Certain cyber extortion events, subject to policy limits and conditions.

If You Think You've Been Scammed

“Time is critical,” says Whitehead, “If you suspect that you've fallen victim to an online banking scam or notice an unauthorised transaction, immediately notify your bank so it can attempt to stop or recover the payment. Prompt reporting can significantly improve the chances of recovering your funds,” he explains.

“If the loss cannot be recovered, having the right insurance in place can provide valuable financial protection against what could otherwise be a significant personal loss.

“As digital payments continue to grow, protecting the money in your bank account is becoming just as important as protecting the assets you've worked hard to build. Speak to your broker today and find out what peace of mind looks like in an increasingly digital world,” Whitehead concludes.