PROJECT: MISREPRESENTATION AND IMPERSONATION IN BANKING (PART 1)
- Isabel Spies
- 3 days ago
- 6 min read
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Financial fraud involving impersonation and misrepresentation occurs when a person falsely claims to be someone they are not (impersonation) or gives false information to deceive another person (misrepresentation). In the context of banking, these tactics are especially dangerous as they exploit trust and access to private financial information, leading to unauthorised financial transactions, loss of funds, and legal complications.
In this case, our client was misled into believing an individual was a banker, resulting in fraudulent transactions and loans applied for in her name. The legal position, lessons, and broader implications for consumers and law enforcement follow.
Please review the follow-up project addressing the legality of SAPS’s claim that this matter is purely civil
and their resulting refusal to open a criminal case.
CASE FACTS:
1. INTRODUCTION AND MISREPRESENTATION:
Our client was introduced as a banker to Mr. Mandla Mahlangu by his partner, Ms. Venessa Mary Auths.
Mr. Mahlangu claimed he could help her secure a loan for renovating her business.
This presentation was false.
2. INITIAL MEETING:
At the first meeting, the client logged into her bank accounts with major South African banks (FNB, Absa, Nedbank) and handed her laptop to Mr. Mandla Mahlangu.
She believed he was a legitimate banker and trusted him to manage loan applications on her behalf.
3. FOLLOW-UP MEETINGS:
Further meetings reinforced her belief that the process was official and legitimate.
4. DISCOVERY OF FRAUD:
While she followed up, the client began receiving notifications of suspicious/fraudulent transactions:
A fraudulent charge of R2,872.00 appeared on her FNB credit card statement (Madison Hotel, Johannesburg).
An R150,000.00 loan had supposedly been applied for at Nedbank.
A R35,000.00 personal loan had been applied for at Absa.
5. ADMISSION OF GUILT:
When confronted, Mr. Mandla Mahlangu admitted to the fraud and signed a written “admission of guilt,” acknowledging that he owed R171,609.00 plus interest.
Despite this acknowledgement, no repayment had been made for more than a year.
6. LEGAL POSITION:
When the client reported the matter to the South African Police Service (SAPS), it was treated as a civil case, presumably because of the signed admission of guilt.
No criminal charges were pursued.
KEY DEFINITIONS:
IMPERSONATION:
Pretending to be someone else, often a person or role with authority (in this case, a bank official), to gain trust and access.
MISREPRESENTATION:
Making false statements or promises, or presenting false credentials, to mislead another party.
FINANCIAL FRAUD:
This includes unauthorised transactions, false loans in one’s name, and misuse of personal financial information.
ADMISSION OF GUILT:
A written or verbal acknowledgement by the perpetrator that they have committed a wrongdoing.
In legal proceedings, it can influence civil remedies but does not necessarily preclude criminal liability.
LEGAL ISSUES:
The perpetrator impersonated a banker and misrepresented himself.
The client trusted him with sensitive financial information (account logins, etc.).
Unauthorised transactions and fraudulent loans were made in her name.
Despite a written admission, enforcement and remedies have been lacking.
The law was apparently applied in a way that viewed the matter as civil rather than criminal, meaning there was no police prosecution.
PUBLIC WARNING:
VERIFY CREDENTIALS:
Always check that someone claiming to be a bank official is indeed employed by the bank and has verifiable credentials.
GUARD PERSONAL ACCESS:
Never hand over laptops, give passwords, banking PINs, or other access to someone—even if you believe they are helping you professionally.
USE OFFICIAL CHANNELS:
Deal directly with the bank through its branch, recognised app or website when applying for loans or other sensitive financial products.
WATCH FOR RED FLAGS:
If meetings or financial dealings occur outside formal banking premises, or with unusual demands for passwords, etc., be suspicious.
SEEK LEGAL RECOURSE:
Even a signed admission of guilt might not guarantee repayment.
Victims should consider both civil claims (for recovery of losses) and pushing for a criminal investigation and charges in cases of fraud.
This case demonstrates how misrepresentation and impersonation can severely undermine a person's financial security.
The trust inherent in banking relationships can be manipulated to gain unauthorised access to financial resources.
Without proper vigilance, verification, and legal follow‐through, victims can suffer lasting financial, psychological,
and legal damage. Prevention, awareness, and strong enforcement are critical.
RECENT SIMILAR INCIDENTS IN SOUTH AFRICA:
According to the Southern African Fraud Prevention Service (SAFPS), impersonation fraud (identity theft, fraud by pretending to be someone else) has increased by about 337% over the past year (as of mid‐2024).
In its 2024 report, SAFPS noted a 26% year‐on‐year increase in overall fraud cases, with impersonation fraud spiking by 356% between 2023 and 2024.
Banking fraud is a major component of these, making up about 45% of fraud incidents reported in certain periods.
There are also warnings from SABRIC and other institutions that AI‐driven scams, deepfakes, fake banking apps, and voice or video impersonation are becoming more widespread.
The SAFPS also warns of scams where people are contacted by individuals pretending to be SAPS or bank employees (fraud departments), telling people their IDs or bank accounts are implicated in fraudulent activity, etc.
These scams often involve social engineering and impersonation to extract banking or personal information.
Many incidents are underreported, especially when victims are embarrassed or prefer civil recovery rather than criminal charges.
Impersonation fraud cases have increased substantially in recent years.
Banking sector impersonation, identity theft, and social engineering attacks are prominent and rising.
IF YOU HAVE RELEVANT INFORMATION, OR IF YOU HAVE BEEN A VICTIM OF MR. MAHLANGU OR
SIMILAR FRAUDSTERS, PLEASE CONTACT THE SSS SPECIALIST INVESTIGATOR:
MR. HENNIE VILJOEN
Contact number: + 27 79 997 1132
Email address: henniev@mikebolhuis.co.za
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