Federal Trade Commission reports rise in banking scams as AI‑driven tax fraud warnings hit South Africa

The U.S. Federal Trade Commission says consumers lost more than $12.5 billion to fraud in 2024, a 25 % increase from the previous year, while the Better Business Bureau recorded a 13.6 % rise in fraud complaints. Scammers commonly impersonate banks via texts or calls, send phishing emails and messages, and pressure victims to transfer money through hard‑to‑reverse methods such as wire transfers, cryptocurrency or gift cards. Advice includes never sharing passwords, PINs or verification codes, verifying sender identities, and pausing before acting on urgent requests.

In South Africa, the South African Revenue Service warned that fraudsters are using artificial‑intelligence‑generated emails and SMS messages that mimic official communications, promising refunds of up to R50 000 and directing recipients to fake websites to steal personal data. The Southern African Fraud Prevention Service notes the use of urgency and fear to compel victims to disclose banking details. Interpol’s African Cyber‑threat Assessment highlights phishing as a leading cybercrime on the continent. Recipients are urged to check sender domains, avoid clicking links, log in directly to official portals, and report suspicious messages to banks or SARS.