A petition calling on Finance Minister Enoch Godongwana to introduce a mandatory reimbursement policy for victims of bank fraud has gained traction as concerns mount over the devastating financial impact of cyberfraud on ordinary South Africans.

Weekend Argus reports that the petition calls for banks to be obliged to reimburse victims who lose money through fraudulent and unauthorised transactions.

It comes against the backdrop of cases such as that of 38-year-old Abigail Jooste, who was sentenced in the Plettenberg Bay Regional Court to an effective 10 years’ direct imprisonment after defrauding an elderly couple of more than R94 000 after manipulating the elderly couple into trusting her with confidential banking information.

The case has again raised questions about how vulnerable consumers, particularly the elderly, are targeted through banking scams and how difficult it can be to recover stolen money once fraud has taken place.

Consumer lawyer Trudie Broekmann said SA consumers did not have adequate protection when money was stolen through cyber-fraud or unauthorised transactions on their bank accounts.

She said, in practice, consumers had little recourse because banks typically responded by saying customers were negligent and therefore refused to reimburse them, or only paid a nominal amount.

To date Broekmann said 16 clients approached their firm and the losses range from R16 000 to over R1m, mostly between R400 000 and R600 000 per person.

Broekmann said banks should be required to prove that a consumer was grossly negligent before holding them liable for losses.

She said gross negligence was not the same as a consumer disclosing access codes, adding that there were cases where customers were ‘primed’ by their banks to give out sensitive information.

Broekmann explained that bank fraud departments often asked customers extensive security questions, and if customers did not provide the requested information, their accounts could be frozen. She said this could create confusion when fraudsters posed as bank officials and asked for similar information, notes Weekend Argus.

According to Broekmann, banks conduct internal investigations and, in most cases, absolve themselves of liability before passing the loss on to the consumer.

She said the current Code of Banking Practice was not strong enough to protect consumers because, while it addressed customer negligence, it did not contain sufficient provisions holding banks accountable for cyber-fraud losses.

National Treasury noted international developments, including the UK’s approach to reimbursement for Authorised Push Payment fraud.

‘While such frameworks provide useful reference points, any potential policy response in SA would need to be carefully assessed within the domestic legal and regulatory context. This includes consideration of the national payment system, consumer protection frameworks, data protection requirements (including Popia), and financial integrity obligations.’

Full Weekend Argus report