In recent years, South Africa has experienced a surge in cybercrime relating to data breaches, identity fraud and ransomware incidents, among other cyber-related offences. One of our clients share his personal experience which shows how increasingly easy it is becoming for criminals to obtain personal information.
South Africa’s strong economy and high digital activity levels compared to other African countries, makes it a top target for cybercriminals as confirmed by Interpol’s Africa Cyberthreat Assessment Report 2025, in which South Africa is the leader in ransomware incidents. This challenge faced by financial institutions especially, can have severe consequences for investors and policyholders, and therefore various industry measures have been implemented to restrict access to investor information.
One example is the Joint Standard 2 of 2024: Cybersecurity and Cyber Resilience Requirements, issued by the FSCA and the Prudential Authority which came into effect on 1 June 2025. Its objective is to strengthen cybersecurity risk management by outlining minimum requirements to be implemented by regulated financial institutions when it comes to digitalised operations.
Even though the standard does not apply to brokers, financial advisors can play a key role in educating investors regarding their responsibility to safeguard personal data. One of our clients recently shared his own experience of fraudulent loan application attempts in his name which he became aware of. By simply obtaining an individual’s ID number, fraudsters can visit credit score websites and insert any ID number to obtain mortgage and other personal information.
One way which individuals can protect themselves against identity fraud, is to register with the Southern African Fraud Prevention Service (SAFPS)*. The non-profit organisation offers a free service by adding your details to their database once registered, should your identity have been compromised in any way—such as in the case of a stolen ID for instance. This means that additional measures will be implemented to verify your identity should a fraudster attempt to misuse your personal details in the future.
It is also important to note that as a financial services provider, WMD Financial Services has strict protocols in place to protect the personal and financial information of our clients. The following measures are some examples of how we ensure this:
- We and our clients are always alerted of any instructions submitted to the financial institutions with which our clients hold investments and policies.
- Should any of our clients’ details change, such as banking details, we make sure we verify the instruction directly with our client before submitting the change request to the financial institution involved.
- Should a financial institution detect an abnormal appearance of a client’s signature, they will request an ID copy with 3 sets of signatures from the client. This is also a necessary procedure for modern times in which electronic signatures are increasingly substituting wet signatures.
- Further to the point above, some financial institutions only accept electronic signatures through approved e-sign software programmes by using the client’s registered mobile number and email address.
Oftentimes the paperwork required for the requests and instructions we facilitate on behalf of our clients may come across as unnecessary and burdensome administration, but these procedures exist solely to prevent fraud and to keep our clients’ investments, policies and information secure. WMD clients can rest assured that our team is highly qualified to do so and that it is our priority to protect our clients’ personal details.
* Disclaimer and Indemnification
WMD Financial Services (Pty) Ltd expressly disclaims any affiliation, partnership, endorsement, or association with the Southern African Fraud Prevention Service (SAFPS). WMD is not a member of, nor does it have any operational, administrative, or legal connection to SAFPS.
Should clients or third parties wish to engage with SAFPS, including but not limited to registering for services or obtaining information regarding their processes, policies, or membership criteria, they are advised to contact SAFPS directly. WMD does not assume any responsibility or liability for the accuracy, conduct, services, or outcomes associated with SAFPS.
By engaging with SAFPS or any other third-party organisation, clients acknowledge and agree that WMD shall not be held liable for any claims, losses, damages, or disputes arising from such engagement.