South Africa

• Money or gift card scams were the most prevalent fraud type from February to May 2025, reported by one-third (33%) of South Africans who said they were targeted with fraud
• Transactions with video gaming companies, where the consumer was in South Africa, were most suspected of digital fraud in the first half of 2025 among industries analysed
• Insurance sector experienced the largest increase in the volume of suspected digital fraud among industries analysed, over the study period

According to the newly released TransUnion® (NYSE: TRU) H2 2025 Update to the Top Fraud Trends Report, the rate of suspected digital fraud[1] was the highest in the consumer lifecycle at account login for South Africa with 2.6% of those types of transaction attempts when the consumer was in the country being suspected of digital fraud in the first half (H1) of 2025. This aligns with a global trend of fraud shifting to account takeover attempts which typically occur at login. Globally, 4.3% of account login transactions in H1 2025 were suspected of digital fraud.

The report, which draws on proprietary data from TransUnion’s global intelligence network from billions of transactions from over 40,000 websites and apps and a consumer survey across 18 countries, reveals that fraud is growing.

“South Africa stands at a critical juncture in its digital evolution where opportunity and vulnerability intersect. As the nation embraces rapid digital transformation, the surge in online activity has inadvertently opened new doors for fraudsters, whose tactics are growing more sophisticated by the day. This convergence of accelerated digital adoption, economic strain and criminal innovation has created a complex risk landscape,” said Amritha Reddy, senior director of fraud product management TransUnion Africa.

According to analysis of TransUnion’s customers in its global intelligence network, digital account takeover volume worldwide grew 21% year-over-year (YoY) from H1 2024 to H1 2025, signalling a rapid escalation. The volume of digital account takeovers surged 141% from H1 2021 to H1 2025, underscoring persistent rise of this fraud type over time and reflecting the increasing sophistication of fraudsters who exploit stolen credentials and bypass authentication systems.

"As account takeover fraud surges, businesses can no longer afford solely reactive defences,” said Reddy. “The growing sophistication of fraudsters demands a proactive investment in layered security and identity intelligence. In today’s threat landscape, protecting customer accounts is not just a priority, it’s a business imperative."

Highest Rate of Suspected Digital Fraud in Video Gaming

Among industries analysed globally, the video gaming sector recorded the highest percentage of suspected digital fraud attempts in the first half of 2025, reaching 13.5%. This represents a significant 28% rate increase compared to the same period in 2024, underscoring the growing vulnerability of this sector to fraudulent activity.

For transactions where the consumer was in South Africa, the rate of suspected digital fraud attempts from February to May 2025 was the highest in video gaming at 7.7%. The greatest increase in the volume of digital transactions suspected to be fraudulent over that time was in the insurance industry, with a 154% uptick.

Chart 2: Suspected Digital Fraud Attempts in South Africa, by Sector

Industry	Suspected digital fraud attempt rate H1 2025	Change in volume of suspected digital fraud attempts from H1 2024 to H1 2025
Video gaming	7.7%	-1%
Insurance	6.7%	+154%
Communities (web properties like online forums and dating sites)	3.2%	-45%
Financial services	3.0%	-49%
Logistics	2.1%	-99%
Retail	1.1%	-57%
Telecommunications	0.7%	-96%

^{Source: TransUnion global intelligence network}

“As the risk from consumer scams threatens identity integrity, organisations should rely on a mixture of data, risk signals, technology and tools to prevent fraud,” said Reddy. “The Report highlights that business leaders rank[2] identity verification, device reputation and behavioural biometrics as the leading three fraud prevention technologies.

“Businesses and financial institutions should also invest in sustained education and awareness campaigns to mitigate against schemes like account takeovers. Preventing fraud must by necessity be a multi-pronged strategy, if businesses and consumers are to stay ahead of fraudsters whose strategies continue to evolve too,” she said. “By harnessing advanced technologies, fostering cross-sector collaboration, and prioritising consumer trust, South Africa can chart a path toward a secure and inclusive digital future.”

Consumer-Reported Exposure to Fraud Grows Amid Gaps in Awareness and Prevention

Globally, consumers continue to face a wide range of scams, with tactics often tailored to regional behaviours and vulnerabilities. TransUnion’s survey found that 48% of consumers surveyed globally reported being targeted by email, online, phone call or text messaging fraud from February to May 2025, with 59% of South Africans saying the same thing. Globally, 52% were unaware that they were targeted, as were 42% of South Africans, indicating potential fraud under-recognition and a gap in fraud awareness.

Consumers in five of the six African countries surveyed reported money or gift card scams as the most experienced fraud type. In South Africa money or gift card scams was the most common fraud type – reported by 33% of those who said they were targeted with email, online, phone call or text messaging fraud from February to May 2025. Among those South Africans who said they were targeted, the next most frequently reported scams were phishing (31%), smishing (30%), and vishing (29%), with these three designed to deceive individuals into giving up their valuable personal or financial information.

South Africa Saw the Greatest Percentage of Respondents in Africa Indicating They Fell Victim to Fraud from February to May 2025

Country	Targeted and fell victim	Targeted but didn’t fall victim	Not targeted	Most reported fraud scheme
South Africa	13%	46%	42%	Money/gift card
Kenya	10%	71%	19%	Vishing
Zambia	9%	76%	15%	Money/gift card
Rwanda	9%	49%	42%	Money/gift card
Namibia	8%	57%	35%	Money/gift card
Botswana	6%	68%	26%	Money/gift card

^{Source: TransUnion consumer survey}

“As scammers continue to evolve their tactics to enrich themselves, it’s more important than ever for consumers to regularly review their credit reports to ensure all listed information is accurate,” said Reddy.”

TransUnion came to its conclusions about digital fraud and data breaches based on intelligence from its array of TransUnion fraud prevention solutions. To learn more about how TransUnion fraud prevention solutions can help businesses avoid fraud and prevent fraud losses, click here.

Specific country and regional data in the report includes South Africa, Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H2 2025 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

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[1] ^{Suspected digital fraud attempts reflect those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation.}

[2] ^{As found by TransUnion’s online business survey conducted from 29 May to 6 June 2025 in partnership with third-party research provider, Dynata. Findings were included in TransUnion’s H2 2025 Update to the Top Fraud Trends Report}