Fraud experts issue warning for South Africans using banking apps
From traffic fines to crowdfunding campaigns, no one is safe from scammers.
From fake AI videos to old-school phishing scams, criminals try to swindle victims in many ways.
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In 2025, there was a WhatsApp scam using deepfake technology, and even the City of Tshwane had to issue a statement about a fake job advertisement circulating online.
Six days into 2026, Woolworths had to issue an urgent warning to customers about a scam circulating online that impacted hundreds of people across South Africa.
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Banking scams are also nothing new, with companies having to almost constantly send out emails, SMSs, or app notifications to warn clients about fraud.
Ironically enough, banking applications might not even be as safe as you thought.
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According to BusinessTech, a highly dangerous and fast-growing form of digital fraud called a Remote Access Trojan (RAT) attack is increasingly targeting people through their smartphones.
These scams are especially effective because they are unknown to most people, and they don't realise what is happening until it is too late.
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RAT attacks are carried out by malicious software that allows criminals to remotely control a victim's phone or computer, giving fraudsters direct access to the device.
This enables them to operate banking apps in real time while the person is still using the phone, without needing login details.
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Speaking to BusinessTech, Bonolo Sebolai, Head of Fraud at TymeBank, explained why these scams are becoming more prominent.
RAT scams are particularly dangerous and extremely sophisticated because they are designed to use the device at the same time as the customer without any clear signs of a device takeover.
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How RAT scams work in South Africa
- It usually starts when criminals phone or message the victim, claiming to be from a courier company, an online retailer, a mobile network provider, a bank's fraud department, or even a government department.
- Victims are then told there is an urgent issue with their account, delivery, or device and are instructed to click a link or install an app. This is often sent via WhatsApp or SMS, and the issue is supposedly "resolved" thereafter.
- Once that software is installed, the scammer can see everything happening on the screen. This includes PINs and passwords as they are entered, one-time passwords sent by the bank, and even live banking transactions.
To the bank, it can look like the customer is making the transaction themselves because the criminal is actually using the customer’s own device.
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Signs to look out for and how to avoid scams
The main thing all scammers rely on is panic and pressure.
As with the RAT scams, common tactics are warnings that an account is about to be blocked or that a service cannot be completed unless immediate action is taken, rushing people to act and using authority.
This is the biggest red flag.
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Other warning signs include:
- being asked to install software to “fix” a problem
- being instructed to approve transactions to supposedly reverse fraud
- being told to stay on the line while logging in
The most important rule to remember is that banks will never ask you to share PINs, OTPs, or to install remote access software.
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Here are a few tips to keep in mind to avoid falling victim to scams:
- Never enter card details on unfamiliar or suspicious websites.
- Be cautious of deals that seem too good to be true.
- Check website URLs and email addresses carefully. Small changes often indicate scams.
- Look for verified social media accounts when engaging with brands.
- When in doubt, contact the retailer directly for assistance.
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What are banks doing amongst growing fraud concerns?
Banks have consistently been working to strengthen security, and modern banking now goes beyond passwords.
In 2026, bank-grade security means monitoring behaviour in real time, not just checking passwords.
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The National Financial Ombud Scheme (NFO) reported a sharp rise in digital banking fraud complaints in 2025, with cases increasing by 73%, from 1,436 between January and May 2024 to 2,483 during the same period in 2026.
In an unfortunate turn of events, our very own Rozanne McKenzie was the victim of a scam that she also never suspected.
Listen to her story here:
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