South Africans facing R5.3 billion 'identity crisis' as criminals target digital banking
South Africa is facing a fast-escalating identity crisis as SIM-based fraud balloons into a multibillion-rand threat to the country’s financial system.
Image: File
South Africa is facing a fast-escalating identity crisis as SIM-based fraud balloons into a multibillion-rand threat to the country’s financial system.
According to the Communications Risk Information Centre’s 2025 Telecommunications Sector Report, telecoms fraud, including SIM swaps, subscription scams and identity impersonation, cost the country an estimated R5.3 billion in 2024.
Bradley Elliott, CEO at RelyComply, said that SIM crime has become a central threat to identity integrity in South Africa:
“SIM crime is no longer a side issue sitting at the edges of the financial system. It has become a central threat to identity integrity itself and therefore to the foundations of digital banking, payments, fintech, and regulatory compliance. And criminals understand this better than anyone,” said Elliott.
He added that South Africa’s dependence on SMS one-time passwords has created a critical vulnerability, with attackers using SIM swaps to intercept authentication messages and bypass basic security checks. This, he said, gives criminals direct access to bank accounts, digital wallets, investment apps and other high-risk environments.
"Under the Regulation of Interception of Communications and Provision of Communication Related Information Act (RICA), networks must register all SIM cards with users’ ID numbers and proof of address. But given how often South Africans swap out SIMs and the free availability of RICA-authorised SIMs at repair shops and informal trading shops, RICA has not stopped SIM crime".
According to Elliott, the rise of cross-border SIM farms is intensifying the problem, with syndicates using hundreds of illicit SIMs to disguise impersonation and fraud attempts.
He said only closer cooperation between banks, mobile operators and regulators, along with better public awareness, will close the gaps that criminals exploit.
“A SIM compromise isn’t just a telecoms issue, it’s a financial crime incident,” Elliott said. “Protecting identity integrity will require the whole ecosystem to act together.”
IOL Business
mthobisi.nozulela@iol.co.za