Fraudsters exploiting bank’s technological advancements

By Khulile Thwala

Technological advances in the banking sector have eased how we can use services but they have also come with new risks.

Unsuspecting emaSwati and local banks have been victims of banking fraud, which has become a prevalent challenge in the sector. The losses accumulated by banks due to fraud have varied over the years, with amounts estimates ranging from approximately E21 million to E30 million.

According to a research paper titled ‘Cybercrimes in the Eswatini banking sector – Implementing Routine Activity Theory Analysis’, compiled by Botho University and the North West University in South Africa, in 2015, Eswatini banks such as Wesbank lost up to E3.4 million. In 2016, the Central Bank of Eswatini recorded approximately E20 million in losses due to fraud.

The paper further reports that First National Bank (FNB) recorded close to E4.2 million in losses. The Deputy National Commissioner of Police Mumcy Dlamini, in 2018, also reported an excessive loss of E30 million due to fraud, inclusive of banking fraud. The emergence of the Covid-19 pandemic revolutionalised the banking sector through innovation, in a bid to avert the risk of spreading the disease. Read More