South Africa’s ongoing battle against SIM card fraud has hit a new low, with startling revelations highlighting a crippling enforcement crisis that threatens national safety, financial stability, and the country’s reputation on the global stage.
Since 2020, law enforcement agencies have conducted 27 investigations into serious crimes linked to SIM card fraud.
Astonishingly, only one of these investigations resulted in an arrest — and that arrest was ultimately withdrawn.
To date, no convictions have exposed a glaring failure in the country’s efforts to clamp down on criminal activities facilitated by unregistered SIM cards.
This alarming statistic was brought to light in a recent parliamentary response from the Minister of Police, revealing a system where thousands of cases involving extortion, kidnapping, murder, and financial fraud are perpetuated annually using unregistered SIM cards.
The failure to effectively investigate or prosecute these crimes underscores a broken enforcement framework with grave implications for public safety.
Farhad Khan, an independent telecommunications consultant, emphasised the gravity of the situation
“The current state of enforcement under RICA is a crisis. The fact that only one arrest has been made – and that was later withdrawn – speaks volumes about the systemic shortcomings. Criminals are emboldened, knowing there’s little risk of detection or conviction,” he said.
The statistics paint a stark picture. Police data indicates that 62% of extortion cases involve unregistered SIM cards, while 58% of all mobile banking app fraud incidents are linked to SIM swaps.
These figures underscore the direct correlation between regulatory gaps and escalating cyber and communication crimes.
“The fragmentation of regulatory oversight – divided among ICASA, the Department of Communications and Digital Technologies, and the Department of Justice – has hampered effective enforcement,” Khan said.
“The recent referral of the RICA Amendment Bill back to Parliament presents a crucial opportunity to address these systemic failures.”
He advocated for a comprehensive approach to reform, including implementing tamper-proof SIM packaging, rigorous point-of-sale verification, and accountability measures for distributors and resellers.
He said that Integrating biometric verification, particularly in collaboration with the Department of Home Affairs, would further strengthen security measures.
“The time to act is now, the Portfolio Committee on Justice and Constitutional Development must seize this opportunity to strengthen the RICA Bill.
“Engaging a broad spectrum of stakeholders – government departments, industry players, civil society – is essential to crafting practical, enforceable legislation capable of curbing the epidemic of SIM-related crime.”
As South Africa grapples with its SIM fraud crisis, experts have warned that failure to act decisively not only endangers public safety but also hampers efforts to exit the Financial Action Task Force (FATF) grey list – a move critical for restoring international trust, safeguarding the economy, and reinstating public confidence in institutions responsible for national security.
“The failure in enforcement represents a national emergency. Strengthening RICA isn’t just about regulation; it’s about protecting our citizens, our economy, and our reputation on the world stage,” Khan said.
In January, the Directorate for Priority Crime Investigation, better known as the Hawks, joined forces with other intelligence agencies to bust someone who was illicitly using four SIM card manufacturing machines to make thousands of SIMs across various mobile network operators.
At the time, Acting Provincial Head of the Hawks in Gauteng, Brigadier Wendy Mashwabane, said following the arrest that law enforcement authorities are “dedicated to eradicating criminal activities that threaten the integrity of our communication networks and the well-being of our communities”.
The South African Banking Information Risk Centre noted that, in 2022, 75% of mobile banking fraud incidents involved SIM swaps, a figure that dropped to 58% in 2023 based on its latest report.
“Despite the decline in reported incidents, mobile banking fraud remains a significant concern, emphasising the need for continued vigilance and proactive measures,” it said.
Politics
