South Africans are facing a new frontier of financial crime as artificial intelligence fuels a surge in digital banking scams. Figures from the South African Banking Risk Information Centre reveal that reported cases of online banking fraud doubled between 2023 and 2024, with losses climbing from R1 billion to R1.4 billion. While overall financial crime has declined, digital scams targeting South Africans have become more sophisticated and damaging.

Currently, banks are not legally obliged to reimburse customers who fall victim to fraud. Compensation is only possible if negligence by a bank can be proven, a process that is often costly and slow. As scams grow more advanced, many consumers are left with little recourse while criminals exploit weaknesses in the system.

The Democratic Alliance (DA) argues that technology should be part of the solution. To that end, it has tabled the 20th Amendment to the Constitution, which would establish an independent Cyber Commissioner. The body would oversee national cyber security efforts, bolster the capacity of police to investigate cyber-enabled crime, and provide a central hub for reporting and monitoring threats.

The DA says the commissioner would also set clear standards to protect sensitive information, coordinate training across public and private sectors, and help citizens navigate digital spaces more safely. With fraud losses mounting and AI-driven scams on the rise, the proposal seeks to ensure South Africa keeps pace with global technological change.

Through the economic lens, the proposal highlights the growing cost of cybercrime and the need to shield consumers from financial harm. Through the political lens, it signals an effort by the DA to position itself as proactive in tackling AI-driven threats while strengthening national security.