Discover the alarming rise of SIM card fraud in South Africa and learn how to protect your mobile banking from this growing threat. File photo.
By: Nicola Mawson
Recently, the Directorate for Priority Crime Investigation, better known as the Hawks, joined forces with other intelligence agencies to bust someone who was illicitly using four SIM card manufacturing machines to make thousands of SIMs across various mobile network operators.
That SIM cards can so easily be produced outside an official manufacturing entity under strict supervision – in this case, they were being made from a home in Mayfair, near Johannesburg – is concerning and shows that consumers should always be on their guard against SIM swap fraud, and know how to identify this scam as well as what to do should they fall victim to this type of fraud.
The South African Banking Information Risk Centre noted that, in 2022, 75% of mobile banking fraud incidents involved SIM swaps, a figure that dropped to 58% in 2023 based on its latest report. “Despite the decline in reported incidents, mobile banking fraud remains a significant concern, emphasising the need for continued vigilance and proactive measures,” it said. SIM swap scams are also variously called port-out scams, SIM splitting, and simjacking.
Matt Cooper, head of global marketing at security firm Sekura.id, highlighted some alarming examples of the financial cost of SIM card swap fraud, stated that the average financial loss per SIM swap fraud incident is estimated at R10 000, although people have lost as much as R500 000.
Cooper, in a blog, stated that large South African banks state that SIM swap fraud accounts for almost a third of 30% of all mobile-related banking fraud with one, unnamed, bank having disclosed that it had reimbursed over R50 million to customers affected by SIM swap fraud in one year.
Vodacom, South Africa’s largest mobile network operator, explained that whether a refund is made will depend on the individual circumstances of the matter, which is thoroughly investigated. However, in most instances, it has been found that a successful authentication of a transaction has taken place.
While Vodacom conceded it’s not impossible for fraudsters to collude with staff members, this will not alone result in a successful fraud attack. “The victims would still, at some stage, have compromised their banking account details and personal information, including their banking log-in details, passwords and PINs,” the operator explained.
Acting Provincial Head of the Hawks in Gauteng, Brigadier Wendy Mashwabane, said following the arrest that law enforcement authorities are “dedicated to eradicating criminal activities that threaten the integrity of our communication networks and the well-being of our communities”.
Vodacom explained that SIM swap is predicated on an identity being stolen through techniques such as phishing, with this information then being used by the criminals to secure a SIM card linked to the victim’s cellphone number.
“Once they have control of your number, they can intercept your calls, and messages, and even use your number for two-factor authentication to access your online accounts, including banking,” Vodacom explained.
Phishing is the most common form of data breach threat, accounting for as much as 15% of all breaches, according to Cloudflare, a security company. Norton, which provides anti-virus solutions, explained that phishing can occur through an email that appears as if it comes from your smartphone provider.
“This email might say that you need to click on a link to keep your account open. When you do, you’re taken to a new page that asks you to provide personal information, including your name, birthdate, and passwords,” said Norton.
From here, the thieves garner the information they need.
MTN South Africa explained that a new tactic involves criminals posing as a family member, claiming they need a one-time-pin (OTP) to claim a competition prize. “Another involves WhatsApp phishing, where fraudsters recreate a profile to appear as WhatsApp itself, requesting an OTP under false pretences,” it noted.
Absa’s website noted that a new scam has recently emerged through which criminals are able to duplicate someone’s number into another SIM card. “Pay special attention to all messages received from your network service provider regarding Twin SIM functionality – if you ignore a notification, your SIM card duplication will go ahead, giving the fraudster full access to any sensitive banking information sent to you,” it said.
MTN South Africa stated that a potential sign of a SIM swap is if a mobile signal suddenly drops. “Act immediately,” it said.
“We urge people to be vigilant and wary of the various scams that exist to trick and manipulate people into disclosing personal and sensitive information and to exercise extreme caution with any requests for such information,” said Vodacom.
“We would also like to caution against storing log-in details, passwords, and PINs on phones or in their contacts as this information may potentially be compromised in the event of a phone being stolen,” Vodacom added.
MTN South Africa warned that people should be aware of aspects such as messages with poor grammar, fake logos, and suspicious URLs, which could indicate a phishing attempt.
Vodacom advises people to pre-emptively register with the South African Fraud Prevention Service, which helps protect against identity theft and fraud.
In addition, banks and cellular operators alike have done quite a bit to try to educate the public on SIM swap fraud, and additional information, including contact details, is placed on their websites. They also have internal procedures in place, which could include placing a hold on a new SIM or transferring banking profiles.
What to do if you are the victim of a SIM swap scam:
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