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Legal frameworks and effectiveness of combating online payment fraud and identity theft in e-commerce : challenges and prospects for enhancing payment security
Thesis   Open access

Legal frameworks and effectiveness of combating online payment fraud and identity theft in e-commerce : challenges and prospects for enhancing payment security

Lee-Yana Martin
LLM, University of Johannesburg
Handle:
https://hdl.handle.net/10210/520105

Abstract

Electronic commerce -- Law and legislation -- South Africa Computer crimes -- Law and legislation -- South Africa Internet fraud -- Law and legislation -- South Africa
This dissertation critically examines the legal frameworks and enforcement mechanisms addressing online payment fraud and identity theft in South Africa’s e-commerce sector. With rapid digitisation, cyber-enabled financial crimes have surged, costing billions annually and undermining consumer trust and systemic stability. The research analyses the interplay between legislation, the institutional roles of the South African Reserve Bank (SARB), the Information Regulator, the Financial Intelligence Centre (FIC) and law enforcement bodies. Despite this framework, practical enforcement remains limited. These gaps are compounded by technological challenges, including the adoption of artificial intelligence by criminals to generate deepfakes, voice clones and large-scale phishing campaigns. Comparative research shows similar implementation failures in Indonesia, where online fraud flourishes despite robust statutes, underscoring that legislation without enforcement is ineffective. Predictive analytics, however, show promise. Judicial precedents in South Africa consistently emphasise debtor responsibility in verifying payment details. While this incentivises vigilance, it also shifts disproportionate burdens onto consumers and fails to address systemic vulnerabilities within payment infrastructures. Socio-economic divides, limited digital literacy and the persistence of outdated Green ID books exacerbate risk, leaving citizens and small businesses highly exposed. The dissertation argues for a holistic approach that accelerates legislative implementation, strengthens law-enforcement capacity, modernises regulatory tools through initiatives. Combined with consumer education and cross-border cooperation these measures can restore trust and resilience in South Africa’s digital economy.
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