Electronic banking fraud in South Africa: key drivers in the digital age. A qualitative analysis

As South African banks rapidly adopt digital technologies, cybercriminals are exploiting system vulnerabilities with increasingly sophisticated tools, leading to a surge in e-banking fraud. This has resulted in financial losses, reputational damage, and heightened risks to ethical conduct and financial reporting. In response, banks are actively seeking effective defences to protect themselves and their clients from cyberfraud. However, to achieve this overarching aim, it is crucial to understand the underlying drivers of cybercrime and to adopt emerging technologies that uphold financial accountability. The objective of this study was to qualitatively identify the principal drivers of e‑banking fraud prevalent within the South African financial system. A qualitative research design was employed, guided by the fraud diamond theory. Semi‑structured interviews were selected as the most effective method of data collection, involving 15 purposively chosen senior risk officers from local banks and branches of international banks operating in South Africa. Data analysis was conducted using MAXQDA 24, through which key themes were identified to determine the drivers of e‑banking fraud in the South African banking sector. The study found that weak judicial processes, poor internal controls, limited oversight, inadequate investment in new technologies, and low levels of fraud awareness are the primary drivers of e‑banking fraud in South Africa. Furthermore, the study highlighted the potential of strategically adopting machine learning for real‑time fraud detection, alongside stronger governance, judicial transparency, and sector‑wide collaboration. In conclusion, the study recommends that the South African banking sector must urgently address these pressing challenges through the proposed practical measures, thereby enhancing resilience and safeguarding the nation’s banking infrastructure, financial stability, reliable financial reports, and client trust in the digital age.