The overseas court ruling that could reshape banking fraud claims in South Africa

A landmark Belgian court ruling has shifted the burden of proof in banking fraud cases, requiring banks to prove gross negligence before refusing reimbursement. The judgment comes as South Africa faces a surge in banking fraud complaints and growing scrutiny over how financial institutions handle scam victims.

One telephone number. Two years. Thousands of calls. Multiple victims. One bank. And a confidentiality clause attached to every settlement.

That sentence, drawn from a detailed case study submitted to IOL by a South African fraud investigator, could serve as the epitaph for the country’s banking fraud crisis – a crisis that, by the numbers, is accelerating.

The National Financial Ombud Scheme (NFO) recorded nearly double the number of fraud-related complaints in 2025 compared with the previous year, closing 3,651 fraud cases and recovering R442.9 million for consumers. Yet, in 85% of banking fraud disputes, rulings favour the banks.

Now, a court ruling from halfway across the world is threatening to rewrite the script.