AI and Social Engineering Drive 40% Surge in Digital Fraud

Cyber-related and digital fraud is increasing globally by approximately 40% annually, driven by methods such as credit card theft, social engineering, and the use of AI and deepfakes. Criminals are converting stolen funds into retail and digital vouchers to launder money, exploiting their semi-anonymous nature. Forensic expert Chad Thomas highlighted that older and less digitally savvy individuals are particularly vulnerable to these scams. The rise in scrutiny of traditional banking transactions has pushed criminals to adopt these alternative methods. Victims are often manipulated through sophisticated tactics, including fake calls that use deepfake technology to impersonate family members. This evolving threat landscape necessitates greater awareness and preventive measures among potential victims. The situation is exacerbated by the ongoing efforts in South Africa to strengthen financial crime controls, which have inadvertently led to new avenues for fraud.

Key Points: • Digital fraud is increasing by 40% annually, with older individuals being prime targets. • Criminals use AI and deepfakes to impersonate relatives, making scams more convincing. • The shift to vouchers for laundering money is a direct response to tighter banking scrutiny.