South Africa is grappling with an alarming escalation in artificial intelligence (AI) scams and deepfake manipulation, which have reportedly surged by an astounding 1,200% within a single year. This rampant growth has infiltrated and severely impacted critical sectors, including banking, financial technology (fintech), insurance, retail, media, and government services, posing significant threats to individuals and institutions alike.

Deepfakes are sophisticated pieces of content—be it videos, images, or audio files—that have been meticulously altered using AI to appear convincingly realistic. These fabrications are capable of imitating real individuals by precisely mimicking their faces, voices, and even unique mannerisms. Their creation relies on machine learning, a subset of AI that processes thousands of authentic photos, videos, and audio recordings of a person to discern their appearance and vocal patterns. This learned information is then applied by computers to generate new, fraudulent content that flawlessly mimics the original, making it incredibly difficult to distinguish from reality. For instance, a deepfake video could falsely depict a president uttering statements they never made, while audio deepfakes can manipulate someone’s voice to trick unsuspecting victims into divulging confidential information.

Currently, these AI-generated fakes are being deployed for a multitude of malicious purposes, including the spread of misinformation, severe reputational damage, identity hijacking, and bypassing security measures that rely on facial or voice recognition. The financial industry has been particularly hard-hit by a diverse array of scams. Fintech and banking services are confronting challenges such as SIM-swap scams, fraudulent account openings, and sophisticated impersonation schemes. In these nefarious acts, AI voice cloning technology is leveraged to replicate the voices of bank personnel, effectively deceiving victims into disclosing sensitive information or approving illicit transactions. South Africa’s First National Bank (FNB) recently issued a warning about a deepfake scam targeting its customers, where scammers impersonated bank staff and even family members using AI-generated voice, video, and text messages, leading some victims to lose substantial sums of money.

The proliferation of such fraud is closely linked to South Africa’s extensive digital connectivity. The nation boasts over 50 million internet subscribers, approximately 124 million active cell phones, and 27 million social media users, collectively presenting an immense and fertile ground for cybercriminals. The reach of AI-enabled crime extends far beyond financial institutions. Insurance companies have reported a rise in fraudulent claims involving manipulated videos or falsified medical reports. These convincing submissions are often difficult to detect through conventional verification processes, forcing insurers to invest in advanced authentication methods. Retailers are also affected, as spammers create seemingly legitimate duplicate online stores or advertising campaigns that redirect customers to fraudulent websites, where they pay for non-existent goods, impacting both e-commerce and physical stores relying on online advertisements. Media outlets have encountered manipulated videos and voice imitations used to propagate misinformation and discredit individuals. Similarly, government organizations have faced breaches involving altered documents and counterfeit identification data used to illicitly access state records.

In response to this surge, detection and prevention methods are evolving. Real-time anomaly detection systems are being implemented to identify suspicious behaviors. Biometric verification and liveness detection are becoming standard practices to confirm the authenticity of faces and voices. Device fingerprinting aids in tracking suspicious activities across various devices, while behavioral analysis helps pinpoint fraudulent patterns before they can succeed. Alongside these technological advancements, robust public awareness campaigns are deemed crucial for preventing successful attacks.

Industry stakeholders are actively advocating for stricter legislative measures to combat the rise of AI-assisted crime. There are widespread calls for new laws specifically targeting the misuse of deepfake technology, coupled with severe penalties for offenders. Compliance models are being revised to integrate AI technology into government regulatory processes, aiming to establish a uniform approach for identifying and prosecuting AI-aided fraud across all sectors. The government has acknowledged the inherent dangers of AI misuse and emphasizes the need for immediate national preparedness. Collaborations between governments and universities are underway to ensure that engineering students are trained to develop systems capable of identifying deepfakes and thwarting AI-enabled cyberattacks. Furthermore, new initiatives will involve social scientists and ethicists to formulate comprehensive guidelines and regulations that prioritize citizens’ privacy and uphold human dignity. Banks and financial technology firms are urged to enhance consumer awareness campaigns, advising customers to verify callers, meticulously double-check messages, and exercise extreme caution before approving any transactions.

The rapid proliferation of AI-driven scams underscores that no sector is immune. As internet usage continues to expand, companies and regulators face mounting challenges in staying ahead of criminals who leverage innovative technologies. The consensus is that a multi-faceted solution, involving collaboration among companies, authorities, and scientists, is essential. By continuously enhancing technology, strengthening regulatory frameworks, and significantly raising customer awareness, South Africa aims to safeguard its users and maintain trust in its digital economy.