Fraud, cybercrime, and opportunity: Financial crime’s triple threat

South Africa’s high criminality ranking in the recently released 2025 Global Organised Crime Index has been widely publicised.

A closer look at the data reveals that financial and cybercrimes have surged, ranking South Africa 7th out of 193 countries. This has been propelled by digital transformation, particularly the growing adoption of artificial intelligence. The impact on both individuals and businesses should not be underestimated.

As Christo Snyman, Managing Member of CS Forensics explains: “No person or business is exempt from the threat posed by financial crime. A ‘career criminal’ is more than just a term – it’s a reality that speaks to the persistence and sophistication of individuals and syndicates who devote their time to systematically exploiting financial systems and human vulnerabilities. Prevention is the best protection, coupled with awareness around the psychological patterns that underpin this kind of crime.”

Key enablers of fraudulent activities
Expanding on this, Snyman points to the concept of the ‘fraud diamond,’ a model used by forensic fraud investigators to describe the four key enablers of fraudulent activities: pressure, capability, opportunity, and rationalisation. The harsh realities of rising debt levels, economic hardship, and lifestyle inflation have created a breeding ground for financial pressure.

Similarly, addiction also commonly plays a part. CS Forensics was recently involved in several cases, where the criminals committed an exuberant amount of fraud, while laundering those funds into online gambling websites, and in one case, fueling an extremely costly drug addiction. These are not isolated incidents – the proliferation of online gambling has significantly lowered the barriers to this high-risk behaviour.

Capability includes the fraudster's position, skill, confidence, and ability to lie effectively, coupled with opportunity when there are weak internal controls, access to sensitive systems, and a lack of oversight.

Outwardly positive developments, such as digital transformation, also present their fair share of loopholes for opportunistic criminals. In fact, Cybersecurity Ventures estimates that cybercrime alone will soon cost the world in excess of $10.5 trillion annually.

The fourth component, rationalisation, helps criminals neutralise guilt or moral conflict, providing justification for their actions.

Business risk on the rise
The financial crime landscape is also fraught with various cases and types of fraud. According to PWC’s Global Economic Crime and Fraud Survey, over half of global organisations experienced fraud in the past two years, with losses exceeding $42 billion.

The danger then extends beyond individuals who fall prey to identity theft, investment scams and phishing. It also presents a very real roadblock for companies, who could fall prey to schemes such as business email compromise, corruption and embezzlement.

Among the potentially devastating financial consequences for companies, the impact of financial crime on businesses is far more widespread, extending to long-term profit losses, extensive reputational damage and the potential for litigation. In many cases, the disruption caused by financial crime undermines strategic initiatives and diverts critical resources from business growth.

Security measures and awareness are a must
For Snyman, the solution is multifaceted. The first step is to implement strong internal controls such as regular and mandatory password changes, strict access management and ongoing auditing of high-risk transactions. Furthermore, companies should invest in robust cybersecurity to identify threats before they escalate into material losses.

“Most importantly, business owners need to realise that the most prominent entry point to an organisation is their employees. This is why a hyper-vigilant, responsible, well-trained team member is not only a valuable human asset but also a powerful identifier of risk and a deterrent of crime. When employees understand and are aware of the practical red flags, they become an active line of defense rathejknr than a passive vulnerability. As an example, if you receive an email from one of your clients informing you of a change of their banking details, do not accept it on the face of the email; make sure that you speak to your client and perform proper due diligence”