South Africa is experiencing a sharp rise in "express kidnappings," where victims are abducted and forced to withdraw or transfer money from their bank accounts.
According to reports, kidnappings have increased by 260% over the past decade, with SAPS statistics revealing that 4,577 cases of kidnapping for ransom were reported in the third quarter of the 2023/24 financial year alone.
This surge has placed South Africa sixth globally for kidnapping and ransom incidents, behind, Lebanon, Kuwait, Canada, Belgium and Turkey.
Gauteng: The epicentre of the crisis
Gauteng, South Africa’s economic hub, remains the hardest-hit province, followed by KwaZulu-Natal. According to the Institute for Security Studies, 80% of kidnappings in Gauteng are linked to hijackings (60%) or other forms of robbery (19%).
Minister of Police Senzo Mchunu attributed the rise in kidnappings to the country's porous borders, suggesting that foreign nationals play a significant role.
However, experts argue that organised crime and weak law enforcement are more likely drivers.
"Generally, things point at foreigners because most of these kidnappings inevitably involve a foreigner, which means that it is correct to say that in South Africa one of the most threatening things to stability in the country is immigration," Mchunu told the media last month.
Are banks liable for victims' losses?
As express kidnappings increase, concerns are growing over whether banks will compensate victims for financial losses.
Compensation, however, is not guaranteed.
In one case last year, a bank refused to reimburse a victim who was kidnapped and forced to disclose their online banking credentials.
Unauthorised transactions totalling R103,092 were processed—despite the bank’s fraud system flagging the activity and contacting the victim, who confirmed the transactions under duress.
The victim lodged a complaint with the National Financial Ombud Scheme (NFO), which ruled in the bank’s favour.
According to the NFO:
"All the funds transferred out of the complainant’s accounts had already been utilised before the bank was made aware of the incident. Therefore, the bank was not found negligent in mitigating the complainant’s loss."
While the bank was not legally required to refund the money, it reimbursed a portion as a gesture of goodwill.
Johan Brouwer, the NFO’s Manager of Adjudication, clarified that banks are only liable if there is maladministration or unfair treatment, or if they fail to prevent or mitigate losses.
"If, after investigation, it is found that there was maladministration or unfair treatment of the consumer by the bank or that the bank could have prevented or mitigated the consumer’s losses but failed to do so, the NFO’s banking division has the power to recommend to the bank involved to refund the portion of the consumer’s losses that could have been prevented but for the bank’s conduct," Brouwer explained.
Bank policies on express kidnappings
The South African Banking Risk Information Centre (SABRIC) says decisions to refund stolen funds are made on a case-by-case basis.
"The specifics of each incident are thoroughly investigated to ensure a fair outcome for the affected client," said SABRIC’s head of communications, Ntshiki Maluleka.
Maluleka emphasised that banks work closely with law enforcement in kidnapping cases and advised victims or their families to report incidents immediately to prevent further losses.
"Acting swiftly is critical. Customers also have the option to request account freezes in the event of a security risk," Maluleka added. However, he cautioned that attempting to freeze accounts while under duress could escalate the threat.
FNB’s Head of iNterfaceX, Giuseppe Virgillito, said the bank has a dedicated team trained to respond to kidnapping incidents. This team is authorised to block accounts and trace funds when a customer’s safety is at risk.
"As such, the bank has established a dedicated team of trained professionals to deal with and respond to kidnapping incidents. These individuals are empowered to make expeditious decisions regarding inter alia blocking of accounts, or tracing of funds as time is often of the essence in the various kidnapping scenarios. Each incident is dealt with on its own merits," Virgillito said.
"Furthermore, we advise customers to be particularly vigilant about who they correspond with and to always be aware of their surroundings and use our visible accounts option on the FNB banking App. It is also advisable for customers to always let someone know of their constant whereabouts as an additional safety measure".
How to protect yourself from express kidnappings
The NFO shared these tips to reduce the risk of becoming a target:
- Be cautious when posting online: Avoid posting sensitive financial information or sudden changes on social media. It is extremely important to be vigilant about what information you share on social media and the perceptions you create about yourself, your family, and your friends.
- Do not draw unwanted attention to yourself: Wearing expensive jewellery, carrying high-end branded items, or carrying other valuables in public may attract unwanted attention.
- Vary your daily routine as often as possible: Diversify your daily activities to reduce predictability. Criminals may monitor predictable routines well before the actual crime is perpetrated to ensure that they are vulnerable to criminal targeting.
- Consult your bank: Discuss the measures your bank may offer to help mitigate potential losses if you become a victim of any type of banking fraud. Many banks provide options to tailor your online banking and app experience, including limiting your exposure and risk.
- Consider investment options: Use accounts with restricted access to limit potential losses. In some instances, investing in a notice account may reduce access to your funds, thereby limiting your overall loss.
- Consider insurance: Check if your bank offers duress insurance or trauma counselling services. These may help in tough situations.
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