Criminals are using increasingly sophisticated digital scams to trick banking customers into handing over their money, with people over 60 emerging as a particular concern for financial institutions. Christopher Boxall, head of Card Transact at FNB, raised the concern during an interview with Hot Business, warning that fraudsters are using increasingly convincing tactics to trick customers into handing over sensitive banking details and authorising payments.
Boxall said people aged over 55, particularly those over 60, appear to be increasingly targeted, with banks recording more fraud cases involving these age groups each month.
“We’re seeing a larger number of those fraud cases being logged on a month-to-month basis,” Boxall said.
The problem is not limited to FNB but is being experienced across the banking industry.
According to Boxall, older customers may be particularly vulnerable as more people embrace digital banking while having accumulated savings and assets over their lifetimes. Some may also be less familiar with banking authentication processes and more inclined to trust people who present themselves as authority figures.
Fraudsters exploit this trust by gathering personal information through data breaches and other sources before contacting potential victims. They use these details to make their approaches appear legitimate and persuade customers to reveal card numbers, expiry dates, security codes and banking passwords.
Criminals also impersonate bank fraud departments, claiming an urgent problem has been detected on a customer’s account. Victims are pressured into acting quickly to protect their money, often without realising they are being manipulated into giving criminals access to their funds.
Boxall warned that artificial intelligence (AI) has made these scams harder to identify. Fraudsters can generate convincing communications, create fake caller profiles and use photographs and banking-related reference numbers to impersonate legitimate employees.
He said banks must tackle the problem through improved technology and customer education.
Financial institutions can use fraud-detection systems that account for different customers’ spending patterns and provide targeted warnings to those identified as vulnerable. However, Boxall cautioned that additional security measures alone may not be enough when criminals manipulate customers into approving transactions themselves.
The warning highlights the importance of remaining cautious even when a caller knows personal details or appears to represent a recognised financial institution. Customers should never disclose confidential banking information or authorise transactions simply because someone claims their money is at risk.
