The South Africa Banking Risk Information Centre (Sabric) warns of a 337% increase in identity fraud, driven by sophisticated AI-powered tactics. Fraudsters are using AI to impersonate individuals, create deepfakes, and forge documents, posing a significant threat to financial security. Sabric highlights the use of injection attacks, voice cloning, and visual deepfakes in these scams. However, the report also emphasizes that AI can be a powerful tool for combating fraud, enabling businesses to detect anomalies, predict fraudulent activity, and enhance security measures.
Identity fraud in South Africa has surged by a staggering 337% over the past year, with artificial intelligence (AI) identified as a key driver of these sophisticated impersonations. This alarming revelation comes from the South Africa Banking Risk Information Centre's (Sabric) AI-Driven Fraud report. Sabric's findings paint a concerning picture of fraudsters increasingly leveraging AI to gain unauthorized access to financial accounts.
One method involves using AI to mimic individuals in what's known as an injection attack. In these attacks, malicious actors insert fabricated biometric data into security systems, effectively bypassing them and gaining access. Sabric warns that these types of attacks are likely to escalate as the rate of AI-generated content continues to rise exponentially.Adding another layer of complexity, scammers are increasingly employing deepfakes – AI-generated images, videos, or audio that convincingly depict real or fabricated individuals. These deepfakes can be created using tools like Clony AI, Voice Celebrity, and Voice AI, requiring only one to two hours of voice content for training. The resulting clones can then be used in social engineering attacks to send voice messages, make phone calls, or even mimic an individual's unique communication style. This presents a significant challenge as demonstrated by a journalist who successfully gained access to their accounts by cloning their voice.The report also highlights the use of visual deepfakes in social engineering scams, where victims are manipulated into sending money or divulging sensitive information. A recent example in South Africa involved deepfakes of SABC News anchor Francis Herd, falsely promoting a project by Elon Musk. Similar incidents occurred at the beginning of 2025, featuring deepfakes of Patrice Motsepe promoting fraudulent investments in companies named Gold Earnings and Africa Gold. Deepfakes are also being used to circumvent selfie verification mechanisms and open bank accounts.Furthermore, generative AI is increasingly being used to forge documents, with identity documents being particularly vulnerable. Attackers who gain access to an ID document can use it to apply for credit cards, open new accounts, or engage in money laundering activities.While AI undoubtedly empowers fraudsters to execute increasingly sophisticated attacks, it also offers businesses valuable tools to defend their customers against these threats. Sabric emphasizes that AI can significantly enhance a system's ability to detect fraud and anomalies in data. Unsupervised learning techniques, such as autoencoders, compress data and attempt to reconstruct it. Any significant reconstruction errors may indicate anomalies in the data, potentially signifying fraudulent activity. Supervised learning models, on the other hand, involve training models with labeled data, including both fraudulent and non-fraudulent transactions. This approach enables the models to learn patterns and characteristics associated with fraudulent activity, ultimately improving their ability to identify suspicious transactions.AI-powered systems can also leverage logistic regressions to predict the probability of a fraudulent transaction, assigning a probability score to each transaction. By setting thresholds for these scores, businesses can prioritize transactions that exhibit a high probability of being fraudulent, allowing for more efficient and targeted investigations
AI Identity Fraud Deepfakes South Africa Banking Security Cybersecurity Fraud Prevention Artificial Intelligence
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africa: Death of Miners in South Africa a Government FailureRights groups are criticizing South Africa's government for failing to prevent what they call a 'massacre' at the Buffelsfontein mine, after security officials cut off food, water, and other essential supplies to miners trapped underground and delayed a rescue operation.
Read more »
South Africa's Illegal Mining Crisis: Unemployment Fuels Deadly RiskThe escalating crisis of illegal mining in South Africa is fueled by high unemployment rates, according to the Bench-Marks Foundation. More than 1,500 illegal miners have been extracted from a shaft at the Stilfontein mine in the North West since November 2024, highlighting the dangerous reality of this widespread issue. The foundation argues that the government's failure to formalize the artisanal mining sector is a key contributing factor, leaving desperate individuals with few alternatives to survive. An anonymous illegal miner interviewed for the story underscores the desperation behind the dangerous practice, stating that these illegal shafts are vital for their livelihood and survival. Meanwhile, authorities in Limpopo province have taken action, arresting over 900 suspected illegal miners between December 2024 and January 2025.
Read more »
Motor Mech Competition Fuels Automotive Skills Development in South AfricaThe Motor Mech competition, initiated by the Motor Industry Workshop Association (MIWA), is bridging the gap between education and industry by nurturing young automotive talent. The competition, which started in 2019, has expanded to several regions in South Africa, with a recent milestone in KwaZulu-Natal. Meadowlands Technical High School hosted its first competition this year, highlighting the commitment to skills development in the province. Technical schools play a vital role in preparing students for careers in the automotive sector, offering courses in mechanical technology, engineering graphics and design, and technical science. The competition provides learners with opportunities for mentorship, job shadowing, and industry exposure, shaping their futures in the dynamic automotive industry.
Read more »
Kagame Accuses Ramaphosa of Lying About South Africa's DRC Interests, Fuels Regional TensionsRwandan President Paul Kagame has accused South African President Cyril Ramaphosa of dishonesty regarding South Africa's involvement in the Democratic Republic of Congo (DRC). Kagame claims South Africa is focused on securing minerals, while Makolo, Rwanda's spokesperson, accuses Ramaphosa of prioritizing personal mining interests over peace.
Read more »
Rwanda's Kagame: Ready for Confrontation with South Africa if NecessaryRwandan President Paul Kagame has asserted that Rwanda is prepared for a confrontation with South Africa should the situation necessitate it. Kagame's statement follows the recent escalation of fighting in the Democratic Republic of Congo (DRC), where 13 South African soldiers were killed. Kagame claims South Africa's military activities in the DRC were not properly disclosed and that Ramaphosa requested logistical support while simultaneously acknowledging South Africa's peace efforts. He further criticizes South Africa's role as a peacemaker and mediator, warning of a forceful response if South Africa seeks confrontation.
Read more »
South Africa Leads Africa in Identity Document Fraud, Home Affairs Urges Migration to Smart ID CardSouth Africa is number one on the continent when it comes to identity document fraud, and Home Affairs has urged citizens to switch to the Smart ID Card.
Read more »