A National Scam Centre is a centralised government-led agency that brings together various experts to fight fraud. (Image created via ChatGPT)
The Financial Sector Conduct Authority (FSCA) is looking to establish a National Scam Centre in the long-term, as part of developing a more coordinated national approach to tackling the rising rate of sophisticated cyber crimes in SA.
This is according to Sindiswa Makhubalo, departmental head of banks and payments providers at FSCA, speaking during a roundtable discussion last week at the FSCA Conference 2026.
According to Makhubalo, SA’s financial sector is experiencing a significant surge in cyber crime incidents, with the growing threat resulting in millions of people losing their hard-earned money to cyber criminals who use sophisticated modus operandi, as well as exploit human psychology.
In light of this, the FSCA has already launched the Digital Fraud Project to coordinate industry-wide crime-fighting efforts.
The initiative, she noted, has led to workshops and collaborative exercises with banks, telecoms firms and regulators, creating work streams focused on reporting, stakeholder collaboration and disrupting fraud.
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“We will put the proof of concept in an anti-scam centre. And I can tell you, colleagues, in the next few years, we are going to have a National Scam Centre in South Africa that is really going to look at how we can disrupt fraud, how can we sit and prevent the losses that we’re seeing every day. So, watch the space. There’s a lot that is coming our way,” Makhubalo stated.
A National Scam Centre (or Anti-Scam Centre) is a centralised government-led agency that brings together experts from law enforcement, regulatory bodies and private industries to combat financial fraud, disrupt scams and raise public awareness.
Existing national centres include Australia’s National Anti-Scam Centre and Malaysia’s National Scam Response Centre, which focus on rapid response, intelligence sharing and public protection.
Sindiswa Makhubalo, departmental head of banks and payments providers at FSCA.
A report published by cyber security company Surfshark reveals South Africa ranks among the world’s worst-hit countries globally for cyber crime density, with estimated annual losses reaching R2.2 billion ($118 million).
According to the South African Banking Risk Information Centre (SABRIC), in 2023, SA recorded financial crime losses amounting to R3.3 billion. It notes this figure dropped to R2.7 billion in 2024, representing a reduction of almost 18%.
The urgency of the FSCA’s plan was underscored by another panellist, SABRIC CEO Andre Wentzel, who explained that cyber fraud has shifted from breaking systems to breaking trust, exploiting social engineering, digital influence and psychological vulnerabilities.
“Criminals are increasingly exploiting social engineering and digital influence. They’re targeting our consumers upstream through phishing, number spoofing, SIM swap-enabled fraud, artificial intelligence (AI)-enabled deep fake impersonations, and fraudulent investment schemes promoted by social media and so-called finfluencers.
“The shift to digital-first services and real-time payments has severely reduced the recovery window that we have. Speed and coordination are critical in responding to these incidents,” Wentzel added.
“It’s very clear that the losses per incident are getting higher and higher in value.”
Makhubalo stressed that collaboration between regulators and financial institutions is crucial to protect consumers. She noted that banks have shown willingness to “meet the customer halfway” in addressing losses, but warned that the fraudsters’ ingenuity means everyone remains vulnerable.
“Whenever Andrew mentions the numbers, it’s shocking. He quoted R2.7 billion. And that R2.7 billion is a number, but behind that number there are customers. There’s a real person that has lost that money,” she said.
“It may be your neighbour, your family, your friend, but it’s real. That R2.7 billion is real. It’s the actual losses that customers have faced.”
Makhubalo noted the victims range from pensioners losing their life savings, to professionals and those caught in romantic scams − emphasising the universal nature of the threat.
“You can get hit. It has no respect of race. It has no respect of age. It has no respect of your digital literacy levels. None of us is immune. And not a single person sitting here, sitting in this room, sitting outside, can fight this alone.”
“The question that we always ask whenever we meet and discuss fraud, is what more can we do and what are we missing?”
