How to protect yourself in an AI-driven fraud economy 

By Tony van Niekerk 

In a world where financial scams have become alarmingly sophisticated, the question we all need to ask is no longer if we’ll be targeted, but when.  

I sat down with Ravi Govender, Group Digital and Technology Officer at Momentum, to talk about the dark underbelly of the digital world: cyber scams, deepfakes, and the increasingly blurred line between fact and fiction online. 

What emerged from our discussion is not just a story of technological advancement, but one of human vulnerability, desperation, and the urgent need for widespread awareness. 

Financially motivated, not just politically driven – Deepfakes, those AI-generated, hyper-realistic video and audio fabrications, are no longer just tools of political disinformation. They are now firmly entrenched in the financial fraud landscape. According to Ravi, about 7% of fraud worldwide is currently linked to deepfakes, and that number is growing fast. The technology behind them has been democratised, meaning just about anyone with internet access and basic tools can now create convincing fake videos or audio clips. 

And if they don’t want to do it themselves, there’s a global black market of cheap, skilled “guns for hire” who’ll do it for them. 

The global fraud landscape is shifting rapidly, and South Africa is not exempt. While we’re still behind West Africa in terms of total volume, South Africa’s cyber fraud rate grew by 310% between 2023 and 2024, placing it third on the continent for growth rate. That’s an alarming trajectory and one that financial professionals, law enforcement, and consumers alike must pay attention to. 

Banking and insurance, two of the most heavily regulated industries in the world, are now among the top three sectors most affected by cyber fraud, behind online dating and digital media. The growth rate in banking and insurance fraud alone was 162% globally last year. These are no longer fringe concerns; they are systemic vulnerabilities. 

Fraud has become a scalable business – What’s perhaps most concerning is how fraud has become scalable. Criminals are moving away from one-off “big score” attacks and focusing instead on smaller, more frequent scams. Ravi shared insights from a Canadian cybercrime expert who warned that collectively, small-value scams now represent a bigger financial loss than some of the large-scale breaches we’re used to seeing on the news. 

This means no one is too small to be a target, and that volume now outweighs value for scammers. 

How scammers make their money 

At the core of many scams is the illusion of opportunity. Most often, these scams are disguised as investment schemes promising quick returns in cryptocurrencies, shares, or AI-driven trading platforms. They often use deepfakes of public figures, business leaders, celebrities, or politicians, endorsing the scheme in what appears to be a genuine video clip. 

The scam is simple: 

1. Create a sense of urgency (“this opportunity won’t last”). 

2. Convince the target to make a deposit, often into a personal bank account. 

3. Disappear with the funds. 

It’s deceptively basic, and it works, because it preys on desperation and economic vulnerability. 

Psychology over technology – While the scams are increasingly technological, Ravi cautions that the real engine behind their success is human psychology. Victims often sense something is off. In fact, many reach out to verify the legitimacy of an investment offer after they’ve already made the deposit. 

Why? Because despite their doubts, hope trumps scepticism. People want to believe that there is a quick and easy way out of their financial struggles. 

This highlights why education needs to go beyond technical safeguards. It’s not just about teaching people how to spot a poorly edited video. It’s about helping them understand that if something seems too good to be true, it probably is. 

Technology is moving fast. Deepfake detection tools exist, but they’re not accessible to everyone, and most people are viewing scams on small phone screens, not high-res monitors. So, what can the average person do? 

Ravi offered a few simple but powerful steps: 

1. Verify the source. If a well-known person or brand is promoting something, call the company or visit their official website. Most reputable brands have contact centres or official verification channels. 

2. Check with the FSCA. All registered financial service providers and advisors are listed with the Financial Sector Conduct Authority (FSCA). If they’re not on that list, walk away. 

3. Ask an adviser. A licensed financial adviser can spot a fake scheme from a mile away. When in doubt, ask for a second opinion. 

4. Fact-check online. A simple search like “Is [investment name] a scam?” can lead you to forums or sites where others have shared warnings or experiences. 

Momentum and other financial institutions are working closely with regulators like the FSCA to bring media attention to the issue. This isn’t a competitive issue, it’s an industry-wide crisis that requires collaboration, transparency, and ongoing communication. 

The goal is to build a culture of healthy scepticism, where people feel empowered to question before they click, transfer, or invest. The convergence of AI, social media, and economic desperation has created a perfect storm for fraudsters. As the technology becomes more powerful and more accessible, the scams will become harder to detect, and more frequent. 

But the solution doesn’t lie in outsmarting AI. It lies in slowing down, asking questions, and staying informed. Before you part with your money, ask yourself: Would Patrice Motsepe, Elon Musk, or the CEO of a bank really DM me about a secret investment opportunity? 

If not, pause. Ask. Verify. It could save you, or someone you love, from becoming the next victim in this fast-growing digital crime wave.