Banks lost over E6.5 mln to fraud in 2025
By Delisa Magagula
Eswatini’s banking sector recorded over E6.5 million in fraud losses in 2025, reflecting ongoing pressure from online scams and digital financial crimes.
The losses represent a 14.55% decline from the E7.69 million reported in 2024, according to figures from the Eswatini Bankers’ Association Fraud and Loss Committee.
Eswatini’s banking industry has continued to face substantial exposure to digital and impersonation fraud, with total sector losses amounting to E6,577,269.24 in 2025.
Although the figure is lower than the E7,697,014.71 recorded in 2024, the overall trend shows that cyber-enabled and identity-based fraud schemes remain a dominant threat to the stability of financial institutions.
This is according to data shared by the Minister for Finance Neal Rijkenberg when he officially launched the 2025 International Fraud Awareness Month under the theme ‘Fraud Has No Boundaries: Guard Your Digital Wallet.’
The launch event, held at the Hilton Garden Inn, brought together representatives from the Central Bank, the Eswatini Bankers’ Association, FinTech operators, and law enforcement agencies.
The data shows that while banks experienced a notable reduction in losses for in forin25, the numbers remain high and signal ongoing vulnerability to digital crime types observed including unauthorised online transactions, fraudulent debit orders, social engineering scams, account takeovers, and identity impersonation.
FinTech service providers, who have become key players in digital payments and mobile-based transactions, also reported losses amounting to E848,393.11, down from E1,865,158.36 in 2024.
This brings combined sector losses for banks and FinTechs to E7,425,662.35 in 2025, compared to E9,562,173.07 the previous year.
The data shows that the majority of losses continue to be driven by online fraud and e-commerce scams, now considered one of the fastest-growing fraud categories in Eswatini.
According to the findings these cases commonly involve compromised credentials, unauthorised digital purchases, and fraudulent transfers executed through online platforms.
Banks report increased targeting of customers through phishing links, malicious emails, cloned websites, and fake customer support calls designed to extract one-time passwords or banking information.
Impersonation fraud often referred to in the industry as FACATA remains the second most common type of loss reported.
The report states that, in these cases, individuals pose as bank officials, fintech agents, law enforcement, or government officers to trick customers into authorising transactions or revealing sensitive information.
Fraudsters have increasingly adopted sophisticated communication methods, including spoofed caller IDs, scripted phone calls, and social media impersonation.
Minister for Finance Neal Rijkenberg noted that despite the decline in recorded losses, this is not an indication of reduced criminal activity.
Instead, he says, it reflects improvements in internal controls, monitoring systems, and customer-awareness initiatives.
“Fraud attempts remain high, with criminals adapting their techniques to bypass tightened security features such as multi-factor authentication, transaction-monitoring algorithms, and enhanced verification processes,” said the minister.
He further mentioned that FinTech firms report similar pressure, particularly in mobile-based transactions where SIM-swap fraud, account takeover attempts, and phishing remain recurrent.
Operators emphasise that mobile money users remain at heightened risk if they share personal details, verification codes, or PINs with unknown callers.
“The move toward digital financial services accelerated by convenience, accessibility, and industry innovation has expanded the attack surface for cybercriminals. Banks highlight that the widespread use of mobile banking apps, online shopping platforms, and instant digital payments has increased the number of entry points criminals can exploit,” said Rijkenberg.
As a result, institutions are investing more deeply in real-time fraud-detection tools, artificial intelligence monitoring systems, and advanced customer authentication.
Meanwhile, law enforcement agencies report improved collaboration with banks, particularly in identifying fraudulent patterns, freezing compromised accounts, and tracing stolen funds.
However, cross-border digital fraud continues to limit recovery opportunities, as stolen funds can be moved rapidly across multiple financial ecosystems within minutes.
Furthermore, financial institutions are also increasing customer education campaigns, warning the public about emerging tactics used by fraudsters.
Banks emphasise that customers must avoid sharing verification codes, avoid clicking on unknown links, and verify communication before responding.
“The fraud environment continues to evolve, and despite progress made in 2025, the landscape remains active. Continued collaboration between banks,
FinTechs, regulators, and law enforcement is considered essential to strengthening the country’s financial resilience and reducing future losses,” said the minister.
