This Capitec move could be a game-changer for its customers

Cape Town – Capitec has stepped up its fight against fraud, using artificial intelligence, real-time payment screening and other advanced technologies to prevent millions of rands from being stolen from its clients.

The bank said its latest intelligent payment screening system helped protect 113,410 clients from losing more than R699 million to fraud between July 2025 and June 2026.

Capitec said it uses a range of fraud-prevention tools across its personal and business banking operations to protect its 26 million clients.

Over the past year, the bank identified and blocked more than 131,000 suspicious beneficiary accounts, including 64,000 mule accounts, while warning clients about more than 394,000 scam payments.

Before an electronic funds transfer leaves a client’s account, each beneficiary is scored in real time. The system uses information from previous reports by clients to determine the beneficiary’s risk rating.

Clients can then review the rating and decide whether to proceed with or cancel the payment.

“Our purpose has always been to make banking work for as many South Africans as possible,” said Blessing Mgaga, Capitec’s Executive Head: Group Risk Enablement & Client Integrity.

“Every transaction is a signal of what clients value, and we want to keep building solutions that reflect what people actually need.”

Eight tools in Capitec’s fraud-fighting arsenal

Among the bank’s latest innovations is Secret Safe, which allows clients to completely hide accounts from the Capitec app.

A hidden account can only be unlocked at a Capitec branch, preventing remote access even if a client’s phone is stolen or compromised.

Capitec said 75,000 accounts had been secured through the feature within a month of its launch.

The bank has also introduced Malware Detection, which scans clients’ phones for malicious software capable of intercepting banking credentials and stealing funds. When suspicious applications are detected, the tool identifies them and provides guidance on removing them.

Another feature under development is Trusted Approver, which will allow clients to nominate someone they trust to approve payments before money leaves their account.

The nominated person will receive a notification through the Capitec app and have 12 hours to approve or decline a payment. They will also be able to pause the client’s app and freeze their cards if necessary.

Criminal networks 

Capitec is also using graph analytics to identify links between criminal networks by connecting information from banking transactions, communications and other systems.

The technology can identify clients being targeted by fraudsters and warn them before a payment is made, allowing the bank to intercept the transaction.

An AI-powered Scam Scanner, meanwhile, will allow clients to check suspicious SMSes and links and determine whether they are legitimate. Capitec said the feature will be available on its app in the coming weeks.

The bank’s Capitec Pulse tool gives branch consultants real-time information about a client’s situation when they make contact through the app. According to Capitec, the technology enables consultants to identify fraudulent transactions and unauthorised account access quickly, allowing threats to be intercepted within seconds.

Capitec Neo AI analyses real-time signals across the bank to detect anomalies, suspicious patterns and emerging threats across thousands of daily transactions.

Solutions 

The bank’s eighth innovation, Capitec AI Donna, is designed to accelerate anti-money laundering investigations by summarising critical information for specialist agents.

“Financial crime is sophisticated and it moves fast,” Mgaga said.

“We are always looking to build solutions that will disrupt the negative fraud flow and pace, using advanced fraud-detection models, cloud-based verification tools and behavioural analytics to keep clients safe.”

Mgaga said technology remained central to the bank’s efforts, but stressed that its value ultimately depended on whether it improved customers’ safety and experience.

“Technology is always worth investing in, the key is ensuring that it continues to make a genuine difference to the people using it,” he said.

“At Capitec our client’s safety is a top priority and an inordinate amount of time and effort will continue to support the protection of our clients.”