Financial Ombud makes banks return R60 million to clients, bulk around cases of fraud

More than R60 million has been returned to aggrieved bank clients over the course of 2025, reports the National Financial Ombud (NFO).

The work by the scheme's Banking Division has not only restored funds but delivered life-changing impact, it says.

Lead Ombud Nerosha Maseti said that, of the R60 million paid back, the majority of refunds were awarded or offered by banks in fraud-related cases.

The NFO also made recommendations where it was found that the service by some banks was not up to standard or not in line with the principles of treating customers fairly.

Mobile banking and internet banking fraud continued to generate the highest number of complaints, accounting for 39% of all cases received. The NFO Banking Division observed a 'significant increase' in online banking fraud complaints, with the total number of complaints having increased by 15% compared to 2024.

The NFO also issued a warning for consumers to be responsible and provide truthful information when applying for credit, especially with the festive season approaching.

It said their Banking Division often receives complaints where consumers accuse banks of reckless lending. However, after investigation it becomes clear that 'consumers provided information to the banks themselves or confirmed that all the information used in the application was true and correct'.

"The Consumer Act requires banks to do affordability checks and if they don't, they can be forced to write off the debt... but the Ombud found cases where consumers were padding how much they earn and reducing their expenses and so on."

There can be severe repercussions if a consumer is found guilty of being untruthful in this way, including legal consequences.

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