SIM swap fraud is on the rise: What you need to know

Jane Dutton interviews Wendy Knowler, Consumer Journalist.

Listen below (skip to 22:57).

A listener, Caroline, contacted Knowler after experiencing two SIM swaps in four months, despite being placed on an MTN "watchlist" after the first incident.

She explained how scammers exploit the simplicity of SIM swapping, often without the victim's knowledge.

In an era where many rely on Wi-Fi and messaging apps like WhatsApp, a sudden loss of signal may not raise suspicion, especially among less tech-savvy individuals.

However, once fraudsters gain control of your number, they can access financial accounts, manipulate personal information, and initiate unauthorised transactions.

Regrettably, within just 12 hours of the scammer gaining access to her number, they managed to set up a debit order.

Despite her efforts to alert the bank to the SIM swap fraud both over the phone and in person, requesting the blockage of her account and cards, the bank still honoured the fraudulent transaction.

Knowler notes that streamlined customer convenience processes inadvertently provide openings for criminals to exploit and drain finances, with SIM swaps serving as a prime example of this vulnerability.

Upon contacting a separate service provider, Vodacom, Knowler was informed that they have mechanisms to detect fraudulent activities.

For instance, Vodacom enables banks to verify the last time a customer requested a SIM swap on a particular mobile number before sending an OTP (one-time password) to that number.

Some banks have already implemented this measure, enabling them to prevent flagged customers from adding beneficiaries within a specific window period while still allowing other banking transactions to proceed, which Knowler applauds.

"Phone your bank and find out if they could do something like this."

- Wendy Knowler, Consumer Journalist

"It could ruin a person financially."

- Wendy Knowler, Consumer Journalist

Scroll up to listen to the full interview.