Overview: Account Login is the Front Door to Digital Fraud
New findings from TransUnion highlight a worrying trend in South Africa: suspected digital fraud is most frequently triggered during account login or password-related activity. The data, covering February through May 2025, shows that many victims encountered fraud attempts at the very moment they accessed online services, wallets, and financial platforms. While cybercriminals often pivot to more complex schemes, the login process remains the most common entry point for fraud in the South African digital landscape.
Key Fraud Types: Money and Gift Card Scams Lead the Way
Among the various deception methods, money or gift card scams were the most prevalent, impacting roughly one-third (33%) of South Africans who reported being targeted. These scams typically involve convincing victims to transfer funds or purchase prepaid cards that are then drained by criminals. The prevalence of these tactics underscores the importance of skepticism around unsolicited requests for money, even when they appear to come from a familiar contact or trusted platform.
Why Account Login Frauds Are Rising
There are several factors contributing to the rise in login-related fraud. phishers increasingly mimic legitimate login pages, while some attackers exploit weak or reused passwords, inadequate MFA, and social engineering to harvest credentials. Once criminals gain access to an account, they can pivot to financial transfers, payment details, or sensitive information that enables further exploitation. Consumers often underestimate the risk of logging into accounts during a phishing attack and may inadvertently authorize fraudulent activity.
Regional Context: South Africa’s Digital-Fraud Landscape
TransUnion’s findings reflect a broader trend in South Africa’s evolving digital economy, where more residents transact online, engage with gaming platforms, and use digital wallets. The report notes that transactions involving video gaming companies and other entertainment platforms, particularly when users are at a paid or rewarded stage, are a notable touchpoint for fraud orchestration. The intersection of convenience, rapid payment methods, and sophisticated social engineering creates a fertile ground for criminals to exploit trust during login moments.
Practical Steps for Consumers: Strengthen Your Login Defenses
To reduce exposure to suspected digital fraud at login, consider the following practical measures:
- Use unique, strong passwords for every service and enable multi-factor authentication (MFA) wherever possible.
- Be cautious of unsolicited login prompts or alerts asking for credentials, even if they appear to come from a familiar service.
- Regularly monitor account activity and set up real-time alerts for unusual transactions.
- Avoid sharing one-time codes or OTPs with anyone, and never enter codes on third-party sites.
- Keep devices and apps up to date with the latest security patches and use reputable security software.
What Businesses Can Do: Strengthen Protections Around Login Flows
For organizations, the TransUnion insights point to tightening login workflows, deploying risk-based authentication, and educating customers about fraud vectors. Security teams should monitor for patterns typical of account takeovers, such as unusual login times, new device signatures, or atypical transaction sequences following a login. Clear communication and rapid response protocols can curb damage when suspicious activity is detected.
Looking Ahead: Staying Ahead of Fraud Trends in SA
As South Africans continue to embrace digital services—from banking to online gaming—fraud prevention must evolve in tandem. The TransUnion report reinforces the need for ongoing consumer education, stronger password hygiene, and robust authentication practices. By prioritizing secure login experiences and proactive monitoring, individuals and organizations can reduce exposure to suspected digital fraud during the most vulnerable moments: during account access and initial stages of online interactions.
