Ombud scheme sounds alarm over rise in ‘express kidnappings’ as bank security tightens

Kidnappings immediately conjure images of ransom demands made to family and friends of the victim. However, increased bank security has inadvertently resulted in an increase in kidnappings where victims are forced to reveal their online banking and banking app passwords under the threat of violence.

The National Financial Ombud (NFO) Scheme, which investigates and resolves consumer complaints against financial service providers in the banking, insurance (life and non-life) and credit space, has sounded the alarm, noting that this type of kidnapping, referred to as “express kidnapping”, is on the rise.

The South African Police Service reported 4,577 cases of kidnapping for ransom during the third quarter of 2023. South Africa has the sixth-highest rate of kidnapping and ransom incidents in the world, after Turkey, Lebanon, Kuwait, Canada and Belgium.

Richard Hood, chief executive of OLEA Insurance, says Gauteng appears to be the epicentre of the kidnapping crisis, accounting for more than half of the cases reported annually. “Gangs are now expanding to other parts of the country in search of new targets. At the beginning of March 2024, Nelson Mandela Bay in the Eastern Cape was identified as a hotspot,” he said.

Hood says express kidnapping has increased exponentially in Africa, with a 30% year-on-year rise over the past decade in South Africa. “This exponential increase is associated with the rising levels of violent crime in the country, and it is no longer just high net worth individuals who are the target. Risk is determined by an individual’s location, community or nationality, vulnerability and type of employment or business.” 

This means everyone is a potential target, Hood warns.

“Kidnappers change the ransom demands according to what they think the victim, or their families, can afford.”

Nerosha Maseti, lead ombudsman for banking at the NFO, says that during the investigation of kidnapping-related complaints the ombud identified a modus operandi where criminals force banking customers to disclose their online banking and banking app passwords under the threat of violence (duress) after kidnapping and detaining them. 

“Once criminals gain access to these platforms, they can alter account limits and make unauthorised transfers, leading to significant financial losses in addition to the trauma of the kidnapping itself,” she warned.

Bank not liable for transactions before it is notified

Tips for prevention and mitigation

• Be cautious when posting online. Avoid posting sensitive financial information or sudden changes on social media. Especially avoid posting about sudden windfalls or money you have received, since this can make you a target;


• Duress insurance. One of the initiatives being considered by banks is the possibility of duress insurance which could offer limited cover in these instances. Contact your bank to find out whether this product is available;


• Do not draw unwanted attention to yourself. Wearing expensive jewellery, carrying high-end branded items, or carrying other valuables in public can attract unwanted attention;


• Vary your daily routine as often as possible. Diversify your daily activities to reduce predictability. Criminals usually (but not always) monitor predictable routines well before the crime is perpetrated;


• Consult your bank. Discuss the measures your bank might 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. For example, investing in a notice account may reduce access to your funds, limiting your overall loss; and


• Consider insurance. Check if your bank offers duress insurance or trauma counselling services. These may help in tough situations.