Banking fraud losses hit E31m, highest in a decade

The banking industry has recorded its highest annual fraud losses in a decade, with reported losses surging 371% to E31 million.

The figures, released by Eswatini Bankers Association (EBA) Chairperson Fikile Nkosi, represent a sharp deterioration from the E6.58 million recorded in the previous reporting year.

Nkosi said the industry recorded 1 392 reported fraud cases during the 12-month period between November 1, 2025 and October 31, 2026, with aggregate losses reaching E31 million.

“This is the highest annual fraud loss figure recorded by the banking industry in the past 10 years,” she said.

The latest losses are almost five times the 2025 figure and approximately four times the E7.69 million recorded in 2024. In 2023, reported losses stood at E5.02 million, illustrating the significant escalation in the financial impact of fraud. She presented the figures at the launch of the 2026 International Fraud Awareness Month at the Police Headquarters in Mbabane yesterday. Themed ‘TIVIKELE’ – Stay Safe Online. Think Before You Click. Verify Before You Trust.’

Nkosi said the figures reflected a growing threat to the country’s financial system. The largest recurring fraud category was scams, which accounted for approximately E5.06 million in losses. Online Card-Not-Present fraud contributed E1.70 million, while altered document fraud accounted for E1.13 million.

The industry also recorded a branch robbery that resulted in E1.6 million in losses, while a SIM-swap-related internal fraud incident carried a reported exposure of E396 000. Nkosi warned that the consequences extended beyond financial institutions, affecting businesses and households.

“When businesses lose money to fraud, their ability to grow, create employment, pay suppliers and contribute to the economy is weakened,” she said. She said the banking industry would strengthen fraud detection, employee oversight, customer verification and internal controls, while continuing to share intelligence through the Fraud Liaison Committee.

Nkosi also urged customers to safeguard their banking credentials, question suspicious requests and independently verify payment instructions before transferring money.

She emphasised that protecting the financial system required coordinated action by banks, law enforcement, telecommunications operators, businesses and the public.

TABLE SHOWING THE VALUE OF FRAUD LOSSES SINCE 2023:

E20m bank fraud exposes insider risk

BANKS faced a E20 million fraud exposure linked to insider collusion and credit manipulation.

EBA Chairperson Fikile Nkosi disclosed the exposure during the launch of International Fraud Awareness Month, identifying internal collusion as a significant financial crime threat.

The revelation comes amid recent arrests involving alleged banking fraud.

A Standard Bank employee and three co-accused were reportedly charged in connection with an alleged E396 152 fraud involving a pensioner’s account, compromised online banking credentials and a SIM-card swap.

The four were subsequently granted bail and indicated their intention to plead not guilty. Nkosi said the E20 million exposure demonstrated the need for stronger employee oversight, effective internal controls and improved fraud detection within financial institutions.

She said the banking industry was committed to strengthening governance and identifying vulnerabilities before criminals exploited them.

Scams drain E5 million from banks

SCAMS accounted for E5.06 million in reported banking fraud losses, emerging as the industry’s biggest recurring fraud category in 2026.

Eswatini Bankers Association (EBA) Chairperson Fikile Nkosi said the losses were driven by social engineering, impersonation, fraudulent online advertisements and compromised payment credentials.

The Central Bank of Eswatini previously reported E8.5 million in cybercrime losses between September 2024 and September 2025, including E7.3 million from mobile money and e-wallet scams. Meanwhile, a branch robbery resulted in E1.6 million in losses, demonstrating that physical banking security remains a concern alongside digital threats.

Nkosi urged consumers to verify payment instructions, protect banking credentials and avoid suspicious links.

Scammers target the educated, police warn

EDUCATED and financially savvy people are increasingly attractive targets for online fraudsters because of their vulnerability to enticing digital money-making schemes.

Police Senior Superintendent Nicholas Jele, a cybercrime specialist, said apprehended facata suspects had identified educated and clever people as their preferred targets. Speaking at the launch of the 2026 International Fraud Awareness Month yesterday, Jele said less educated and unsuspecting individuals were often considered harder to deceive because they were less likely to pursue online money-making opportunities.

“I’ve often been asked which sector of society is most targeted. Well, they prefer the clever ones,” he said.

He warned that education alone does not guarantee protection against online fraud.