Nerosha Maseti, Lead Ombud of the National Financial Ombud (NFO) South Africa Banking Division

Over R60 million returned to consumers in 2025. That’s the headline achievement of the National Financial Ombud (NFO) South Africa Banking Division this year, under the leadership of Lead Ombud Nerosha Maseti.

Through decisive rulings and tireless dedication from case administrators and adjudicators, thousands of consumers and banks have resolved disputes, even in the most challenging circumstances.

The NFO Banking Division’s work has not only restored funds but delivered life-changing impact, reinforcing fairness and trust across the banking sector.

As 2025 closes, the Banking Division stands as a powerful example of accountability in action, driving confidence, integrity, and justice in financial services.

Maseti said of the R60 million paid back to aggrieved consumers, the majority of refunds were awarded or offered by banks in fraud-related cases. However, 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.

The Banking Division’s recommendations extended far beyond monetary compensation which included  the return of repossessed vehicles, the writing-off of debt – including confirmation of prescribed debt or overcharging of interest – reducing financial strain on debt stressed consumers, and measures to avoid the sale of property at auction.

Importantly, many of these recommendations have driven significant changes in the banks’ internal processes and procedures, strengthening protection for consumers and improving industry standards.

“Our work is not only about resolving individual complaints; its about driving improvements that benefit all consumers. By holding banks accountable and promoting fair treatment, we are helping to create a more transparent and responsible financial landscape,” said Maseti.

Trends and observations

Mobile banking and internet banking fraud remain the highest complaint generators, together accounting for 39% of all cases received. The NFO Banking Division observed a significant increase in online banking fraud complaints during 2025 with total complaints having increased by 15% compared to 2024.

Maseti said as technology and AI evolve, so too do fraudsters’ tactics. Fraudsters are increasingly using AI to deceive consumers, convincing them that they are speaking with their banks and persuading them to transfer funds directly to the fraudster’s accounts. Some scammers are even able to clone or copy bank numbers, making it extremely difficult for consumers to distinguish between legitimate calls and fraudulent ones.

Be responsible when applying for credit

Collection-related complaints also remain high, as many consumers continue to face financial challenges and seek recourse from the Ombud’s Office. Often these consumers are overindebted. With the festive season approaching, the NFO reminds consumers to be responsible and provide truthful information when applying for credit.

Under the National Credit Act (NCA), credit providers must conduct an affordability assessment before granting credit. Consumers are obliged to provide truthful and complete information and avoid conduct that could lead to over-indebtedness.

“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.

The consequences for providing false information can be severe:

• Application Rejection: Credit providers verify details through credit bureaus and with supporting documents. Should they pick up that fraudulent or false information has been provided, the application will be rejected.
• Legal Consequences: Misrepresentation may constitute fraud and could lead to a listing on the Southern African Fraud Prevention Services (SAFPS) database.
• No Reckless Credit Defence: If you provided incorrect information, you cannot later claim the credit was granted recklessly.

“Transparency protects your financial future and upholds the integrity of the credit system. The NFO urges consumers to answer honestly and ensure all information is up to date and correct when applying for credit,” said Maseti.

Looking ahead to 2026

The NFO Banking Division will continue to innovate and improve its services, ensuring more consumers receive fair resolutions and guidance in an evolving financial landscape.

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

ENDS