Fraud-related credit complaints surge 46% as consumers face debts they never incurred

BUSINESS NEWS - Fraud is no longer simply a case of money disappearing from a bank account. Criminals are increasingly targeting everyday credit facilities, from retail and furniture accounts to cellphone contracts and non-bank personal loans.

The NFO says fraud-related complaints handled by its non-bank Credit Division increased by 46%, from 124 cases in 2025 to 181 in 2026 - an increase of 57 cases in a single year.

“Fraudsters are no longer necessarily stealing the physical card. They are increasingly targeting the information, credentials and trust that sit behind the transaction,” says Nerosha Maseti, Lead Ombud for Banking and Credit at the NFO.

How the fraud landscape is changing

The NFO's case experience shows that fraud affecting non-bank credit can take several forms, including card-not-present transactions, phishing, vishing, identity theft, fraudulent personal-loan applications, stolen card details and misuse of one-time passwords (OTPs).

Consumers may also find themselves disputing fraud listings with credit bureaux or the Southern African Fraud Prevention Service (SAFPS).

These cases span retail, telecommunications and consumer credit finance, highlighting that fraud is no longer solely a banking-sector problem.

When fraud becomes a debt problem

The consequences can extend well beyond an unauthorised purchase.

A fraudulent transaction or credit application can result in a growing account balance, collection activity, an SAFPS listing and potentially damaging credit information.

Consumers may then have to dispute debts, credit agreements or fraud listings relating to transactions or applications they say they never authorised.

“We are seeing the nature of credit complaints change,” says Maseti.

“Consumers are increasingly approaching us not just about balances or collection practices, but about debts arising from transactions they never authorised. That is a serious consumer-protection issue.”

She says the fraudster may make the transaction, but it is the consumer who can ultimately face the debt, collection activity and potentially adverse credit information.

When an OTP does not tell the whole story

One NFO case involved a consumer who disputed an R18 488.80 online card-not-present transaction processed on a retail store credit account on 25 March 2025.

The consumer said they had received a call from someone posing as a representative of the retailer. The caller warned of supposed fraudulent activity and offered to help prevent further fraud.

The disputed transaction was processed shortly afterwards.

The credit provider confirmed that the transaction had been authenticated using a one-time password sent to the consumer's registered cellphone. No SIM swap or system compromise was detected.

The investigation concluded that the consumer had likely been deceived into disclosing the OTP during a vishing scam.

The NFO accepted that the consumer was a genuine fraud victim who believed they were dealing with a legitimate representative. However, it found no evidence of negligence or system failure by the credit provider.

Because the transaction had been validated using the consumer's own security credentials, the Ombud found no legal or equitable basis to reverse or write off the debt.

The case highlights an important warning: being a victim of fraud does not automatically mean a credit provider will be liable for the resulting loss.

Don't ignore a disputed credit transaction

The NFO is urging consumers to act quickly if they discover an unauthorised transaction on a credit account.

Ignoring the account can allow the balance to grow and may result in interest and other charges, collection activity, continued disputes over whether the transaction was authorised and potential credit-reporting consequences, including an SAFPS listing.

“One of the worst things a consumer can do is ignore the problem,” says Maseti.

“If an unauthorised transaction appears on your account, report it immediately and keep a record of everything you do to resolve it.”

Consumers should formally challenge the transaction with the credit provider and obtain a written record of the dispute rather than assuming the matter will resolve itself.

Credit providers also have a role

The NFO says protecting consumers should not end with blocking a transaction or account. How a suspected fraud case is handled after it is reported is also important.

Credit providers should have:

Accessible channels for reporting suspected fraud;
Prompt investigations into disputed transactions;
Proper preservation of evidence, including mitigation steps taken after the fraud is reported;
Clear communication with consumers throughout the investigation;
Fair handling of collection activity while disputes are being reviewed; and
Processes that take the circumstances of individual cases into account.
Maseti says this is particularly important for vulnerable consumers.

“A consumer who has just discovered that someone has used their credit facility fraudulently should not have to become a forensic investigator to be heard.”

The NFO says reporting processes should be simple, understandable and responsive, while consumers should act promptly and provide all available information.

Five steps to take if you suspect credit fraud

Stop: Cut off contact with the suspected fraudster. Do not share personal, banking or security information.
Report: Contact your credit provider immediately using an official telephone number or website.
Secure: Change compromised passwords and secure affected accounts and devices.
Dispute: Formally challenge the unauthorised transaction or credit agreement. Get a complaint or reference number and keep relevant evidence, including statements, SMSs, emails, screenshots and WhatsApp messages.
Escalate: If the complaint remains unresolved, approach the NFO, provided the matter falls within its jurisdiction.

Where consumers can turn

The NFO's services are free to consumers. The Ombud advises consumers to first lodge a complaint directly with their credit provider and give the provider an opportunity to resolve the matter.

Consumers can then approach the NFO if the dispute remains unresolved and falls within its jurisdiction.

NFO contact details: