BUSINESS NEWS - Over R60 million returned to consumers in 2025. That is the headline achievement of the National Financial Ombud (NFO) South Africa Banking Division this year, under the leadership of Lead Ombud Nerosha Maseti.

Through decisive rulings and the tireless dedication of case administrators and adjudicators, thousands of consumers and banks have been assisted in resolving disputes, even in the most challenging circumstances.

The NFO Banking Division’s work has not only restored funds but has delivered life-changing impact, reinforcing fairness and trust across the banking sector.

As 2025 draws to a close, the Banking Division stands as a powerful example of accountability in action, driving confidence, integrity and justice in financial services.

Maseti said that of the more than R60 million paid back to aggrieved consumers, the majority of refunds were awarded or offered by banks in fraud-related cases. 

However, recommendations were also made where it was found that service by some banks did not meet required standards or align with the principles of treating customers fairly.

The Banking Division’s recommendations extended far beyond monetary compensation and included the return of repossessed vehicles, the writing-off of debt – including confirmation of prescribed debt or the reversal of interest overcharges – reducing financial strain on debt-stressed consumers, as well as measures to prevent the sale of properties at auction.

Importantly, many of these recommendations have driven significant changes in banks’ internal processes and procedures, strengthening consumer protection and improving industry standards.

“Our work is not only about resolving individual complaints; it’s about driving improvements that benefit all consumers. By holding banks accountable and promoting fair treatment, we are helping to create a more transparent and responsible financial landscape,” said Maseti.

Trends and observations

Mobile and internet banking fraud remain the highest complaint generators, accounting for 39% of all cases received by the NFO Banking Division.

The division observed a significant increase in online banking fraud complaints during 2025, with total complaints rising by 15% compared to 2024.

Maseti said that as technology and artificial intelligence evolve, so too do fraudsters’ tactics. Criminals are increasingly using AI to deceive consumers, convincing them that they are speaking to their banks and persuading them to transfer funds directly into fraudsters’ accounts. In some cases, scammers are even able to clone or mimic bank telephone numbers, making it extremely difficult for consumers to distinguish between legitimate and fraudulent calls.

Be responsible when applying for credit

Collection-related complaints also remain high, as many consumers continue to face financial pressure and seek assistance from the Ombud’s office. Often, these consumers are over-indebted. With the festive season approaching, the NFO reminds consumers to be responsible and to provide truthful information when applying for credit.

Under the National Credit Act (NCA), credit providers are required to conduct affordability assessments before granting credit. Consumers, in turn, are obliged to provide accurate and complete information and to avoid conduct that may lead to over-indebtedness.

“The Banking Division often receives complaints where consumers allege that banks have granted credit recklessly. However, after investigation, it becomes clear that consumers themselves provided incorrect information or confirmed that all the information used in the application was true and correct,” said Maseti.

The consequences of providing false information can be severe:

• Application rejection: Credit providers verify details through credit bureaus and supporting documentation. If fraudulent or false information is detected, the application will be rejected.

• Legal consequences: Misrepresentation may constitute fraud and could result in listing on the Southern African Fraud Prevention Services (SAFPS) database.

• No reckless credit defence: If incorrect information was provided, consumers cannot later claim that credit was granted recklessly.

“Transparency protects your financial future and upholds the integrity of the credit system. The NFO urges consumers to answer honestly and ensure all information is accurate, complete and up to date when applying for credit,” said Maseti.

Nerosha Maseti - Credit and Banking Lead Ombud at the NFO.

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