The Impact of E-Banking Risks on Elderly Users

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As digital banking becomes the norm, ensuring its security is more crucial than ever - particularly for vulnerable populations such as pensioners.

Dr Nondumiso Ndlovu’s thesis: “Investigating Security Threats of E-Banking Services on Pensioners: A Case Study of Hammarsdale, Mpumalanga Township, KwaZulu-Natal” provides an insightful look into how elderly users are navigating the complex and increasingly perilous world of e-banking.

Ndlovu selected Hammarsdale after careful observation. The township, with its growing elderly population, became a microcosm for examining the challenges older South Africans face in the digital transition.

She explained that many pensioners - including her own parents - have faced barriers such as digital illiteracy, limited access to secure devices and inadequate cybersecurity awareness. Although driven by national efforts to promote digital inclusion, these gaps remain especially pronounced in township settings.

While e-banking is often praised for its convenience, Ndlovu’s research uncovered a darker reality. Pensioners in Hammarsdale reported falling victim to a range of security threats, including phishing scams, identity theft, and SIM swap fraud.

One tragic story stood out: an elderly woman lost her entire pension grant after unknowingly sharing her One-Time PIN with a scammer impersonating a bank official. ‘She trusted the caller because he knew her name and recent banking details. The emotional toll was just as devastating as the financial loss,’ Ndlovu recalls.

Her study revealed that trust in e-banking platforms is fragile. While many pensioners trust their banks, they feel far less confident navigating unfamiliar technology.

‘Trust in the banks themselves is higher than trust in the technology. The feeling of losing control in the digital environment leaves many pensioners feeling exposed and vulnerable,’ notes Ndlovu.

Ndlovu also explored the role of community dynamics. In Hammarsdale’s close-knit environment, many elderly users rely on family or neighbours to help with digital banking. However, this mutual support sometimes leads to privacy breaches and, in unfortunate cases, exploitation.

‘I know of some whose children pretended to help them with transactions, only to later steal from them. Digital illiteracy and stigma often prevent pensioners from asking questions or seeking help, increasing their vulnerability to cybercrime,’ she explained.

Security personnel involved in the study expressed concern that cybercriminals were evolving faster than public awareness campaigns - especially in under-resourced areas. ‘Although banks have standard protections in place, they’re not doing enough to safeguard those unfamiliar with online threats,’ Ndlovu said.

Ndlovu stressed the urgent need for community-based digital literacy programmes, tailored fraud detection systems, and stronger collaboration between banks and local law enforcement.

A significant finding was the inadequacy of current bank-led education strategies. Most rely on digital platforms like SMS and email - tools many elderly users struggle to access or understand. Additionally, bank staff are often ill-equipped to provide patient, clear assistance to older customers.

Among Ndlovu’s key recommendations is the establishment of digital literacy workshops tailored specifically for elderly users. She advocates that these be held in local languages and hosted in accessible venues such as clinics, libraries, or churches.

She also recommends simplified banking interfaces with intuitive security features, and government-subsidised devices and data plans for pensioners. More importantly, she calls for the swift enforcement of cybercrime laws to better protect this vulnerable group.

‘Banks must not assume a one-size-fits-all approach to digital adoption,’ she argues. ‘By addressing the unique vulnerabilities faced by older users, we can ensure that digital financial services become a tool for inclusion - not exploitation.’

Ndlovu hopes her research will serve as a wake-up call for policymakers and financial institutions to prioritise the digital safety of vulnerable, elderly citizens. She envisions a national framework where banks are required to provide specialised support and bridging the digital divide, particularly in rural and township areas.

Her research journey was supported by her supervisor, Professor Nirmala Gopal, and funded in part by the Southern African Clothing and Textile Workers’ Union (SACTWU) Bursary Scheme and the National Institute for the Humanities and Social Sciences (NIHSS).

‘I am especially grateful to my life partner for being my rock. Most profoundly, I dedicate this achievement to my mother, whose strength and sacrifices continue to inspire me every day - this is for you.’

Words: Rakshika Sibran

Photograph: Sethu Dlamini