AI is making fraud harder to spot as criminals target South Africans and businesses

Artificial intelligence is changing the way fraud is carried out

Artificial intelligence (AI) is changing the way fraud is carried out, with criminals using increasingly convincing fake identities, cloned voices and manipulated communications to trick South Africans and businesses.

According to a TransUnion report, South Africa recorded the highest rate of suspected digital fraud among African countries analysed in 2025, with 3% of transactions involving South African consumers flagged as potentially fraudulent.

The report warns that AI is accelerating the scale and sophistication of fraud, allowing criminals to create more convincing scams targeting both consumers and businesses.

“In South Africa, fraudsters succeed where trust is already established, particularly inside mainstream digital platforms where consumers reasonably expect safety and legitimacy,” Amritha Reddy, senior director of fraud product management at TransUnion Africa, said.