Business · Companies · 3 hrs ago
Capitec uses hidden checks to disrupt fraud syndicates
Capitec, a bank in South Africa, says it is using two tactics to disrupt fraud syndicates that move stolen money through mule accounts.
A mule account is a bank account used to receive and transfer money from fraud.
With its “ghost stop” tactic, Capitec keeps some suspected mule accounts looking active but holds incoming funds so they can be recovered and returned to clients.
Its “landmine selfie” tactic can require the person who opened an account to verify their identity before money can be moved out.
The bank says the aim is to make scams less profitable, since criminals can cheaply replace blocked accounts.
The selfie check has limits: a deceived account holder may still verify their identity and continue sending money, so Capitec says it must also monitor transactions.
The tactics come as reported claims for digital banking crime in South Africa rose to R2.41-billion in 2025, up 29.2% from 2024.
Capitec has not said when it began using the tactics or how many accounts or funds they have affected.
Capitec is using hidden checks to disrupt fraud syndicates and make scams less profitable.
Its “ghost stop” tactic leaves suspected mule accounts appearing active while holding incoming funds so they can be recovered and returned to clients.
A “landmine selfie” triggers an extra biometric check when someone tries to move money out of an account.
Group CIO Andrew Baker said the tactics are intended to raise the costs and uncertainty for criminal operations.
South African digital banking crime cost clients R2.41-billion in reported claims in 2025, according to the South African Banking Risk Information Centre.
- Who
- Capitec, South Africa’s largest bank by client numbers, and fraud syndicates.
- What
- Capitec uses “ghost stop” and “landmine selfie” checks to disrupt suspected mule accounts and hold funds.
- When
- The tactics were described by group CIO Andrew Baker in a piece supplied to TechCentral on 12 October 2026. Capitec has not said when it began using them.
- Where
- South Africa.
- Why
- Capitec aims to make fraud unprofitable by increasing the costs and uncertainty for syndicates.
This story does not have two clearly opposing sides.
When the money arrives and cannot be moved onwards, the criminals discover that their investment has failed after they have already incurred the cost.
That uncertainty makes it harder to plan the next operation or trust the people supplying accounts.
The number of scams blocked remains an important measure of fraud prevention, but it tells only part of the story when criminals can cheaply replace accounts and start again.
Digital banking crime cost South Africans R2.41-billion in reported client claims, according to the South African Banking Risk Information Centre.
Andrew Baker described Capitec’s “ghost stop” and “landmine selfie” tactics in a piece supplied to TechCentral.
- Active clients
- Capitec has 26.6 million.
- Reported claims
- R2.41-billion in digital banking crime losses in 2025.
- Change in claims
- Reported client claims rose 29.2% from 2024 to 2025.
- Reported incidents
- 110 074 in 2025, up 12.8%.
- Mule account payment
- Syndicates may pay a recruited account holder less than R500 for banking credentials.
Sources
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