Skip to main Communities My dashboard Log in Sign up Published April 17, 2026 | Version V4 Book chapter Open Chapter 4 Cyber Fraud and Financial Stability Evidence from the United States and South Africa. Authors/Creators Magangeni, Lloyd (Researcher) Contributors Editor: Magangeni, Lloyd Description Abstract Cyber fraud has evolved from a low-level nuisance to a systemic threat to financial stability. In the United States, ransomware attacks on payment systems, business email compromise (BEC) draining corporate accounts, and supply chain cyberattacks have prompted the Financial Stability Oversight Council (FSOC) to designate cyber risk as a top systemic vulnerability. In South Africa, cyber fraud is exacerbated by load-shedding (rolling blackouts) that disrupts fraud detection systems, a high incidence of insider collusion, and under-resourced law enforcement. This chapter provides a comparative analysis of how cyber fraud affects financial stability in the US and South Africa, drawing on central bank reports, forensic case studies, and quantitative evidence on contagion, liquidity freezes, and reputational runs. We find that the US faces greater systemic risk from interconnectedness – a single major bank or payment processor outage could cascade. South Africa faces a “chronic fragility” risk – repeated, smaller cyber fraud incidents erode trust in the banking system incrementally, reducing deposit and investment flows. We identify two bridging pathways: (i) cross-border cyber threat intelligence sharing to track fraud proceeds flowing from SA to US; (ii) capacity-building for South African banks to implement US-style real-time fraud containment protocols. The chapter concludes that cyber fraud is no longer a micro-level crime but a macroprudential concern requiring trilateral (US–SA–UK) coordination. Files Files (31.1 kB) Name Size Download all Chapter 4 Cyber Fraud and Financial Stability Evidence from the United States and South Africa.docx md5:42ba69fc14d15aa0bbaf2c76af798275 31.1 kB Download Additional details Dates Copyrighted 2026-04-17 13 Views 9 Downloads Show more details All versions This version Views Total views 13 13 Downloads Total downloads 9 9 Data volume Total data volume 280.3 kB 280.3 kB More info on how stats are collected.... Versions External resources Indexed in OpenAIRE Communities Keywords and subjects Keywords Cyber fraud; financial stability; systemic risk; ransomware; business email compromise; South Africa; United States; load-shedding; contagion Details DOI DOI Badge DOI 10.5281/zenodo.19628436 Markdown [](https://doi.org/10.5281/zenodo.19628436) reStructuredText .. image:: https://zenodo.org/badge/DOI/10.5281/zenodo.19628436.svg :target: https://doi.org/10.5281/zenodo.19628436 HTML <a href="https://doi.org/10.5281/zenodo.19628436"><img src="https://zenodo.org/badge/DOI/10.5281/zenodo.19628436.svg" alt="DOI"></a> Image URL https://zenodo.org/badge/DOI/10.5281/zenodo.19628436.svg Target URL https://doi.org/10.5281/zenodo.19628436 Resource type Book chapter Publisher LOMAG PTY Rights License Creative Commons Attribution 4.0 International The Creative Commons Attribution license allows re-distribution and re-use of a licensed work on the condition that the creator is appropriately credited. Read more Copyright 2026 Lloyd Magangeni Citation Export Technical metadata Created April 17, 2026 Modified April 17, 2026 Jump up About About Policies Infrastructure Principles Projects Roadmap Contact Blog Blog Support Help FAQ Developers REST API OAI-PMH Contribute GitHub Donate Funded by Powered by CERN Data Centre & InvenioRDM Status Privacy policy Cookie policy Terms of Use This site uses cookies. Find out more on how we use cookies Accept all cookies Accept only essential cookies