Don’t ignore unauthorised transactions

National Financial Ombud Scheme South Africa 46% increase in fraud-related complaints targeting everyday credit facilities

9 hours ago

Gugu Myeni 2 minutes read

Fraudsters target credit facilities, leaving unsuspecting consumers indebted PHOTO: Pexels

Consumers are continuously paying the price for debt they did not approve.

This is either through unauthorised credit such as retail and furniture accounts, cellphone contracts or personal bank loans.

The National Financial Ombud Scheme South Africa (NFO) said it has noted a 46% increase in fraud-related complaints targeting everyday credit facilities, leaving consumers with debts from transactions they never made.

Fraud cases have reportedly climbed from 124 in 2025 to 181 this year.

“Fraudsters are no longer necessarily stealing the physical card. They are increasingly targeting the information, credentials and trust that sit behind the transaction,” said lead ombud for banking and credit at the NFO, Nerosha Maseti.

Non-bank credit fraud takes many forms

– Card-not-present transactions
– Phishing and vishing
– Identity theft
– Fraudulent personal loan applications
– Stolen card details
– Misuse of one-time passwords (OTPs)
– Disputed fraud listings with credit bureaux or the Southern African Fraud Prevention Service

In one case before the NFO, a consumer disputed liability for an R18 488.80 online card-not-present transaction processed on a retail store credit account.

“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,” said Maseti.

“The credit provider confirmed the purchase had been authenticated with an 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.

“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.”

5 actions to take in case of suspected credit fraud:

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

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

3. Secure – Reset compromised passwords and secure affected accounts and devices.

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

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

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