South Africa’s banking ombudsman said this week 7,056 formal cases had been opened in 2017, up 35 percent from the previous year.
The Ombudsman for Banking Services (OBS) handles complaints from customers whose banks are members of the Banking Association of South Africa.
“This is an indication of a growing need for the ombudsman’s services in the sector, and a reflection of the complexity of complaints that the banks receive and ultimately rely on the ombudsman’s office to resolve,” the OBS’s Reana Steyn said of last year’s increase in cases.
The OBS said the highest number of complaints were in the online banking sector, which accounted for 22 percent.
“These complaints show the need for increased security measures as the dispute sub-categories indicate that cell phone banking fraud and phishing fraud made up 77 percent of the internet banking cases at the Ombudsman’s office,” said Steyn.
Nearly 71 percent of the cases were closed within 0 – 2 months, while about 30 percent were closed within 2-4 months. On average, cases were closed within 34 business days.
The Northern Cape and North West provinces had the least number of complaints, while Gauteng and KwaZulu-Natal had the most. (via African News Agency)
