It’s the festive season. For most, that means it’s a time to relax and unwind with family and friends. It’s also when scammers intensify their efforts because people are less vigilant and 13th cheques mean some have more money than usual.
According to the South African Banking Risk Information Centre’s (SABRIC) 2023 Annual Crime Statistics Report, a concerning rise in financial crime has resulted in an economic loss of almost R3.3 billion.
The biggest increase was in cybercrime. SABRIC notes that “criminals have begun to exploit advanced technology such as generative AI to perpetrate sophisticated fraud schemes, including fake e-mails and deepfake content”.
Another financial crime category that escalated was fraudulent financial product applications.
Scammers typically attempt to obtain your PIN code or one-time password (OTP) to steal money from your bank account or get you to reveal your personal details to apply for loans or other financial products in your name.
Gavyn Letley, from specialist loans provider DirectAxis, says: “Because criminals are constantly evolving there’s no ‘foolproof’ way to avoid scams. Everyone is potentially vulnerable, but you can reduce the chances of being caught out by being vigilant.”
What to look out for and some ways to avoid common scams
1. Verify before trusting
- Check the authenticity of phone calls, messages, or emails pretending to be from banks, retailers, or service providers before providing any information. Don’t provide your personal details on the phone even if the caller says they’re from the bank or an IT company.
- Don’t click on links in emails or SMS messages. Contact them using official contact details, not those provided in messages.
- Be suspicious of messages claiming that you’ve won a prize, inherited money, or are eligible for a low-interest rate loan.
2. Don’t share personal information
- Never give anybody your password, PIN or OTP, even if they claim to be from the bank or a reputable company.
- Don’t share your ID number, address, or other personal information on social media platforms.
- Don’t throw out documents containing personal details. Shred or destroy them before disposal.
3. Be cyber smart
- Only shop on reputable websites with secure payment gateways (look for ‘https’ in the URL and a padlock icon).
- Use strong passwords for online accounts, ideally a mix of upper- and lower-case letters, numbers, and symbols.
- Enable two-factor authentication wherever possible.
- Keep your bank cards and mobile devices secure. Especially those devices used for online banking. Report and block any lost or stolen cards immediately.
- Do not access online banking, make purchases, or share sensitive information on public wi-fi. Use a VPN if necessary.
- Install and update reliable anti-virus software.
- Never allow unauthorised people to access your devices remotely.
- Don’t let unauthorised people into your home or devices even if they claim to be technicians.
4. Recognise red flags
- Beware of urgent payment requests for goods or services you didn’t order, and unusual payment methods such as gift cards, cryptocurrency, or wire transfers. These are often used in scams.
- Scammers exploit goodwill with fake charity requests. Donate directly to known organisations instead of responding to random requests.
- Be wary of upfront payment requests for goods, and services or to release prizes or other funds.
- Look for spelling mistakes, outdated logos, unusual email addresses or non-business e-mail domains such as G-mail in communications.
5. Keep tabs on your finances
- Regularly check your bank accounts and credit reports for unauthorised transactions or sudden changes. Free tools such as
- Report any suspicious activity to your bank or financial service provider. Fraud departments can help investigate and shut down scam accounts or websites.
“Fraudsters identify and exploit vulnerabilities,” says Mr Letley. “Don’t think you’re too clever, tech-savvy, or sophisticated to be conned. You might spot 99% of the scams but only need to make one mistake. The best protection is to take note of scam updates from your bank and other financial institutions, keep yourself informed, be very careful and, if unsure, err on the side of caution.”