Dr Jerry Chetty, Head of Business Integrity at Santam

A recent InfoQuest survey found that 57% of South Africans have been targeted by scams in the past year, indicative of an increasingly sophisticated “scam economy”. While fraudsters one focused primarily on banking and e-commerce, insurance scams have become a fast-growing new frontier, ranging from fake policy offers to claim manipulation and the impersonation of legitimate insurers.

The challenge, according to Dr Jerry Chetty, Head of Business Integrity at Santam, is that these scams look and sound increasingly authentic, thanks to advances in artificial intelligence (AI). “Poor grammar used to be the easiest tell-tale sign of fraud,” he says. “But today, platforms like ChatGPT have been re-engineered by cybercriminals into versions such as FraudGPT or WormGPT, which generate convincing phishing emails and impersonation scams..”  

Fraudsters are also using deepfake technology to mimic the voices and images of trusted figures to lend credibility to investment and insurance scams. As a result, Chetty says Santam has seen a sharp rise in impersonation scams, where criminals pose as policyholders or brokers to access policy details and submit false claims. Another growing trend involves fake premium discount offers. “Scammers send emails or WhatsApp messages claiming the insurer is offering a 40% discount if you click a link and ‘verify’ your details. These links are designed to gather personal data which can then be used to perpetrate various types of fraud.” he explains.  

Some scams are more opportunistic, preying on people’s inherent greed. “We’ve seen cases where someone reports a vehicle theft, legitimately claims from their insurer. The insurer settles the legitimate claim; the owner thereafter receives a call from someone pretending to be a police officer saying the vehicle has been recovered. The person then requests monies from the owner for the ‘release’ the vehicle and towing of the vehicle back to the owner. The owner pays the monies instead of contacting the insurance company.

Even jobseekers are being targeted. Fraudsters advertise fake roles on WhatsApp, requesting personal information such as ID numbers and CVs to build synthetic identities that can be used for impersonation or fraudulent claims.

AI’s accessibility has also blurred the lines between victims and perpetrators, Chetty adds, noting that some consumers are beginning to misuse AI to fabricate claims. “We’ve seen AI-generated images of burst geysers or car accidents submitted as evidence. In one experiment, we found that an AI platform could produce a detailed burglary claim narrative, complete with stolen items, and a tone and format tailored to specific insurers. It’s concerning, because it shows how quickly technology can be weaponised.

When it comes to protecting yourself from scams, Chetty emphasises that vigilance remains the best defence. “If it sounds too good to be true, it probably is. Never share personal information – including your ID number – over the phone or online. If someone calls claiming to be from your insurer, end the call and contact the insurer directly using a verified number. Legitimate representatives will already have your details and will not ask for them.”

He also advises consumers to destroy old policy documents rather than discarding them, as criminals often retrieve personal data from discarded papers. “And if you suspect your information has been compromised, register with the Southern African Fraud Prevention Service (SAFPS). This ensures that if someone tries to open an account in your name, the system will flag it as compromised,” he adds.

Chetty concludes that fraud awareness starts with everyday habits. “Fraudsters exploit our trust and our tendency to prioritise convenience over caution. By taking a moment to verify and question before we click or share, we can not only avoid becoming a victim of fraud but also help curb the growing scam economy in 2026.”

“This is why we urge our clients to never ignore suspicious activity,” he adds. “If you receive a call, message or email that feels off, end the interaction immediately, but don’t stop there. Contact your insurer to report what happened. By alerting insurers to these attempts, we strengthen our collective ability to detect, prevent and ultimately win the fight against fraud.”

Be extra vigilant as we go into the festive season. Fraudsters are most active during this period as we go into holiday mode, and we relax our vigilance.