What steps does the bank take when you report fraud?

Banking fraud is rising at an alarming rate. Criminals now often use psychological manipulation to trick you into disclosing sensitive information.

Ettienne Fourie, head of retail and business banking fraud at FNB, says fraud usually starts with what appears to be genuine communication.

It might be an SMS, a WhatsApp message, an email QR code or a phone call from what appears to be a reputable organisation, such as your bank, a retailer or a government agency.

Typically the message creates a sense of urgency, fear, or confusion, prompting you to act hastily without verifying the request.

“They tap into your emotions, so you ignore logical reasoning and act on impulse,” Fourie explains.

Watch out for red flags

In some cases, fraud may be performed on your account without your involvement, and you only become aware of it later.

Be sure you are always able to receive messages from your bank – switch the notifications to a working device if your regular one isn’t working or you lose it. This way you can pick up any fraudulent transactions immediately.

In other instances, you become part of the fraud without realising it as you are conned into divulging personal information.

If you are asked to respond to an urgent request, it’s a red flag. Don’t do anything before you have confirmed the facts. Pause and contact the institution that the message you received purports to come from first to verify it. Never make payments to “secure” your money or disclose confidential information to anyone claiming to represent your bank or another institution.

Use bank features to protect yourself

Most banks offer self-service features that allow you to control your banking activity via your banking app. This includes being able to freeze cards, set daily limits for withdrawals and online purchases, enable biometric authentication and change your PIN. Some also allow push messaging to accept or decline online payments.

Your bank may also allow you to lock certain features within their app that you do not use. This means no one else can use them either. As an example, you could lock the money transfer feature, meaning that no one can transfer money out of your account, even if they gain access to your account.

Time is of the essence

As soon as you suspect fraud, contact your bank directly through verified channels, such as your bank’s app or the contact details on the bank’s website.

This provides your bank with the best chance to protect your funds and prevent further losses. All major banks in South Africa have a 24-hour fraud line. Have the following information at hand:

Details of the incident

The disputed transactions

The reason for suspecting fraud

The case number if you have reported the fraud to the South African Police Services

Your bank will investigate, confirm fraud and preserve funds that may still be recoverable.

“Speed is critical in fraud cases, and intervention begins as soon as the matter is reported,” Nick Harris, the head of financial crime at Capitec, says. He notes that the recovery timelines vary from case to case. “It depends on the number of accounts involved, the complexity of the case, and the number of institutions that need to work together.”

Your bank account will be frozen and if you have any debit orders, these will be returned unpaid. It is important to notify creditors of the situation so you can make alternative payment arrangements. 
 

Tracking and tracing the fraud trail

Your bank will gather information to determine whether any sensitive data, banking credentials, devices or cards have been compromised. Investigators examine numerous factors including account activity, transaction records and authentication logs to understand how the fraud occurred and whether additional criminal activity is underway.

“This includes understanding whether the transaction was authorised and if the customer's profile or devices may have been compromised by malware, phishing, vishing, social engineering or other criminal tactics,” Thembelihle Mafuya, chief risk officer for personal and private banking at Standard Bank, explains.

Your bank’s internal fraud department cannot seize your phone or computer as they do not have the authority to do so. Only law enforcement agencies can seize your electronic devices, and they need to follow a legal process before doing so.

Bank accounts are frozen to preserve funds and if any fraudulent accounts are linked to associated banks, they will be notified.

You are provided with a fraud case number, and some banks allow you to track the status of your fraud case through their banking app, which also provides regular updates.

Fraudulent card transactions are not automatically reversed. The outcome of the bank investigation depends on the specific facts and whether security controls were bypassed, manipulated or correctly followed during the transaction process.

Banks work consistently to protect you

Banks devote significant resources to prevent fraud, which includes advanced analytics, artificial intelligence and real-time monitoring systems designed to detect unusual or potentially fraudulent activity. They employ specialist teams who work around the clock to detect, prevent and investigate fraud.

As a bank customer, you are also provided with tools to protect yourself against fraud. This includes secure digital banking platforms, real-time transaction notifications, feature and card locks through the app, account alerts, self-service security settings and biometric authentication. Banks also communicate with their customers regularly around the latest criminal tactics and how to bank safely. Make sure you read these.

The banks’ efforts have achieved some good results of which you may not even be aware. According to Capitec, for example, between June 2025 and June 2026, their AI-driven security systems blocked over 114 000 fraudulent beneficiaries and 132 000 mule accounts.

“Over the same period, our AI warnings blocked over 325 000 scam payments, saving clients more than R788 million,” Harris adds.

You, as a customer, remain one of the strongest lines of defence against fraud, Mafuya says. Fraud prevention is a shared responsibility, she says.

Your bank invests extensively in technology to combat financial crimes, but you also need to protect your personal information, be vigilant to new scams, and report suspicious activity as soon as possible.

 “Early detection, prompt reporting and ongoing awareness are still some of the most effective tools available in the fight against financial fraud,” she says.