Nerosha Maseti, Lead Ombud for Banking and Credit at the National Financial Ombud Scheme

Fraud in South Africa is no longer just about money vanishing from a bank account. Criminal networks are increasingly targeting everyday credit facilities, leaving consumers with debts tied to transactions they never made or authorised.

Finance schemes from retail store and furniture accounts to cellphone contracts and non-bank personal loans are being targeted, leaving victims saddled with debt for transactions they never approved.

The National Financial Ombud Scheme South Africa (NFO) reports a 46% rise in fraud-related complaints within its non-bank Credit Division, climbing from 124 cases in 2025 to 181 in 2026. That represents 57 additional cases in one year.

“Fraudsters are no longer necessarily stealing the physical card. They are increasingly targeting the information, credentials and trust that sit behind the transaction,” says Nerosha Maseti, Lead Ombud for Banking and Credit at the NFO.

A changing fraud landscape

The NFO’s case experience shows that fraud affecting non-bank credit takes many forms, including card-not-present transactions, phishing, vishing, identity theft, fraudulent personal-loan applications, stolen card details, misuse of one-time passwords (OTPs), and disputed fraud listings with credit bureaux or the Southern African Fraud Prevention Service (SAFPS). These scams cut across retail, telecommunications and consumer credit finance, demonstrating that fraud is no longer just a banking problem.

Consequences beyond the purchase

A fraudulent transaction or fraudulent credit application can trigger a cascade of consequences, namely, mounting balances, SAFPS listing, collection activity and potentially damaging credit records. Consumers may find themselves disputing debts, credit agreements or fraud listings for transactions or credit they never authorised, with long-term financial and reputational repercussions.

Maseti said: “We are seeing the nature of credit complaints change. Consumers are increasingly approaching us not just about balances or collection practices, but about debts arising from transactions they never authorised. That is a serious consumer-protection issue.

“The fraudster may make the transaction, but the consequences can follow the consumer in the form of debt, collection activity and potentially adverse credit information.”

Case study: Ghost purchase on a retail account

In one matter before the NFO, a consumer disputed liability for an R18 488.80 online card-not-present transaction processed on a retail store credit account on 25 March 2025. The consumer reported receiving a call from someone posing as a retailer representative, warning of “fraudulent activity” and offering to help prevent further fraud. Shortly afterwards, the disputed transaction went through.

The credit provider confirmed that the purchase had been authenticated with a one-time password (OTP) sent to the consumer’s registered cellphone. No SIM swap or system compromise was detected. The investigation concluded that the consumer had likely been deceived into disclosing the OTP during a vishing scam.

The NFO accepted that the consumer was a genuine fraud victim who believed they were dealing with a legitimate representative. However, it found no evidence of negligence or system failure by the credit provider. The transaction had been validated using the consumer’s own security credentials, and the Ombud found no legal or equitable basis to reverse or write off the debt.

The case illustrates a stark reality that being a victim of fraud does not automatically make a credit provider liable for the loss.

Fraud can become a debt problem

The NFO is urging consumers not to ignore a credit account simply because they believe a transaction is fraudulent. If an unauthorised transaction remains unpaid or unresolved, consumers may face a growing account balance; interest and other charges; collection activity; continued disputes about whether the transaction was authorised; and potential credit-reporting consequences including an SAFPS listing.

Maseti said: “One of the worst things a consumer can do is ignore the problem. If an unauthorised transaction appears on your account, report it immediately and keep a record of everything you do to resolve it.

“Do not assume that because you did not make the purchase, the problem will automatically disappear. Engage the credit provider, challenge the transaction formally and obtain a written record of the dispute.”

Credit providers also have a role to play

The NFO says prevention cannot end at blocking a transaction or account. The response after a consumer reports suspected fraud is equally important.

Credit providers should ensure:

• accessible reporting channels;
• prompt investigations into disputed transactions;
• preservation of evidence including the mitigation steps taken after becoming aware of the fraud;
• clear communication throughout the process;
• fair handling of collection activity while disputes are under review; and
• consideration of the circumstances of each case.

Maseti emphasises accessibility for vulnerable consumers. “A consumer who has just discovered that someone has used their credit facility fraudulently should not have to become a forensic investigator to be heard.”

Processes must be simple, understandable and responsive, while consumers must act promptly and provide all available information.

Five things to do if you suspect fraud on your credit account

STOP – Cut off contact immediately. Do not engage further or share personal, banking or security details.

REPORT – Alert your credit provider immediately using an official phone number or website.

SECURE – Reset compromised passwords and secure affected accounts and devices.

DISPUTE – Formally challenge the unauthorised transaction or credit agreement. Obtain a complaint or reference number and keep statements, SMSs, emails, screenshots, WhatsApp messages and other evidence.

ESCALATE – If your complaint remains unresolved, take it to the NFO, provided the matter falls within its jurisdiction.

Know where to turn

The NFO’s services are free to consumers. Consumers should first lodge their complaint directly with their credit provider and allow the provider an opportunity to resolve the matter.

Contact details for the NFO:

Telephone: 0860-800-900

WhatsApp: +27 (0) 66 473 0157

Email: media @nfosa.co.za  info@nfosa.co.za

ENDS