Collaboration is the ultimate fraud combatting solution

The recent SAFPS Fraud Summit laid bare the stark reality of South Africa’s fraud landscape, and it is clear that fraudsters are getting smarter, faster and more organised.

According to data revealed at the summit, alarmingly, over 83 000 fraud listings were recorded with the Southern African Fraud Prevention Service (SAFPS) – this is an all-time high, which clearly supports the fact that fraud and scams continue to be on the rise.

The same period also saw active fraud listings increasing by 26% compared to the previous year, while impersonation listings, where personal information is fraudulently used increased by 16%. The misuse of customer bank accounts made up nearly half, or about 46.3% of all fraud listings, representing a hike of around 24%. 

Another concerning fraud trend identified, was the rise of synthetic identity fraud, where fraudsters create entirely fake identities using both real and fabricated information. These identities are then used to open accounts, apply for credit, and even register SIM cards. The increasing accessibility of Generative AI (GenAI) and deepfake technology has added another layer of complexity to fraud, where AI is being deployed for various types of attacks, including creating and manipulating audio and/or visual content to appear authentic. The summit also noted that more than 60% of digital fraud cases now involve some form of mobile interaction, whether through phishing links on messaging apps or compromised SIMs.

Given financial losses frequently experienced by victims of fraud, financial institutions including banks, often take centre stage in discussions around fraud. However, the role of mobile operators has become progressively important because of the increasing reliance on mobile devices and services and the industry's convergence with other industries, such as finance and media, which creates new opportunities for fraud and scams. It is therefore no surprise that fraudsters leverage converged technologies to develop new schemes, using phishing, smishing, and vishing, to trick individuals into divulging sensitive information. Convergence also allows fraudsters to operate across geographical boundaries, making it challenging for authorities to track and prosecute them.

There is no disputing that connected devices are now the front door to the digital economy, however that door is being targeted far too often. While the telco sector has made significant strides in combatting fraud, fraudsters are adapting at a breakneck speed and constantly innovating and adapting their own tactics, making it difficult for the industry to stay ahead.

 It is therefore widely accepted that fighting this scourge requires a concerted effort and collaboration with various stakeholders across industries and sectors with a view to share information, coordinate efforts and combat fraud. This collaboration should extend to all law enforcement and other crime fighting agencies as well.

Collaboration efforts should also explore the use of AI to analyse data across business sectors in near real time with a view to identify unusual activities, patterns and behaviour that could be indicative of fraud. This approach however requires that intelligence is shared efficiently between role players, institutions and jurisdictions.

While there may be certain challenges that may hinder collaboration, particularly in dealing with critical issues relating to commercial sensitivity and data protection, these can be overcome by willingness and a concerted effort by all role players to trade competition for collaboration, for policymakers to provide the necessary legal framework and support around this.

Another key aspect relating to collaboration is ensuring that customers and the public are not left behind. They require proactive, cross-sectoral fraud education campaigns are required in order to empower them and mobilise them in the fight against fraud. This includes consumers across all segments and irrespective of the level of tech-savviness.

The establishment of the Communications Risk Information Centre (COMRiC) has been a pivotal step in shifting the mobile industry’s fraud response from fragmented efforts to a coordinated, sector-wide approach. COMRiC provides a shared platform for telecoms operators to exchange threat intelligence, align security protocols, and coordinate rapid responses. While partnerships with bodies like SABRIC remain essential, COMRiC enables real-time collaboration across the digital ecosystem. The cost of inaction is steep without it, fraud will scale unchecked, harming consumers, eroding trust, and driving up financial losses. The goal is a connected, cross-industry defence model that moves from reacting to predicting fraud. Through COMRiC, the telecoms sector can lead this shift enabling not just communication, but confidence in the digital economy.

In addition to the establishment of COMRiC, mobile operators have also made significant strides in collaborating with various other agencies, including the South African Banking Risk Information Centre (SABRIC) - an NPO established to combat organised bank-related financial crimes and cyber threats.

There are many other parties who are instrumental in fighting these types of crimes include both the public and private sector, various NGOs and NPOs, industry bodies and stakeholders such as law enforcement, government departments and the regulators.

As digital connectivity deepens across South Africa, the telecoms sector holds the keys to both inclusion and protection, and this is through devices like mobile handsets. We must view ourselves not just as enablers of communication, but as custodians of trust. We are cognisant of the fact that the fight against fraud requires bold action, continuous innovation, and above all, partnerships across sectors.  In line with Vodacom’s purpose, which is to connect everyone for a better future, technology is nothing without humanity and when we use tech for good, we go further together ensuring no one, including customers, are left behind.

There’s a saying that goes, “No man is an island” – with the fight against fraud, no organisation can fight it alone, and no organisation can operate in isolation. As the telco sector, we must continue to forge strong relationships both within and across the various business sectors. We must join forces with the likes of crime fighting agencies, insurance companies, banking institutions, government agencies to create a united front. Sharing fraud intelligence and suspicious activity data in real-time is no longer a nice to have, but a necessity. Now more than ever, cross-sector collaboration is crucial.

*Johan Van Graan – Chief Risk Officer at Vodacom Group