South Africa is increasingly being identified as a major operational base for international scam networks, particularly those linked to Nigerian organised crime groups, according to a recent global report on fraud operations.
The study highlights Johannesburg and Cape Town as primary centres where scam activities are coordinated. These operations range from small, decentralised units to more structured networks connected to global syndicates.
Globally, fraud has expanded into one of the most lucrative forms of organised crime. Industry estimates suggest that scams generated more than $1 trillion in 2024 alone, while over half of the world’s adult population reported encountering some form of scam within a year.
Unlike traditional organised crime models, modern scam centres are highly adaptable. They operate out of residential properties, hotels, and even legitimate office spaces, often blending in with legal businesses such as call centres.
Decentralised networks driven by technology
The report points to Nigerian confraternities as playing a dominant role in South Africa’s scam ecosystem. Groups such as Black Axe have maintained a presence in the country for over two decades, focusing on schemes like business email compromise and online romance fraud.
Rather than operating from large, centralised hubs, these groups rely on small, highly connected cells. Each unit typically consists of a handful of individuals who specialise in different roles, including technical infrastructure, identity fabrication, and victim engagement.
Advanced technologies are central to these operations. Tools such as deepfakes, fake investment platforms, and automated translation systems enable scammers to target victims across multiple countries with minimal cost.
Financial flows are equally complex. Illicit proceeds are moved through a combination of cryptocurrency, fintech platforms, and informal money mule networks, making detection difficult for authorities.
South Africa offers several advantages for these operations. Its modern banking system, reliable internet infrastructure, and global financial integration make it easier to move money and communicate internationally.
Additionally, operating from South Africa can reduce suspicion among victims. Requests to transfer funds to South African accounts are often perceived as less risky compared to transfers to countries with stricter scrutiny.
There are also indications that some individuals attempt to secure legal status in South Africa through personal relationships, enabling easier travel to Western countries.
Historically, Nigeria has been the primary base for such operations. However, the increasing use of South Africa as a secondary hub reflects a broader shift in organised cybercrime, where networks diversify geographically to reduce risk and expand reach.
As global scam networks continue to evolve, South Africa’s role within this ecosystem is likely to remain under increasing scrutiny from law enforcement and international agencies.
Source: Mybroadband
