The end of the year is fast approaching, bringing with it the festive season and the anticipation of a hard-earned vacation that many South Africans look forward to. While this is a time of good cheer and increased shopping activity in preparation for the December break, it’s also a busy period for scammers eager to take advantage of this heightened consumer activity.

Recently, many South Africans have reported an increase in banking fraud attempts to a popular Johannesburg radio station, with scammers becoming increasingly aggressive and convincing in their tactics.

“This is not uncommon,” warns Roy Retief, Head of Operations at the Southern African Fraud Prevention Service (SAFPS). “Scammers are generally more active during periods of increased consumer activity. It’s essential to know how to spot a scam and what measures you have available to prevent becoming a victim.”

Impersonation Fraud

When it comes to banking scams, fraudsters are continually devising new methods to deceive their victims; however, many common scams tend to follow a set formula.

“Impersonation fraud is rampant when it comes to banking scams,” Retief explains. Scammers often pose as bank representatives, armed with a lot of personal information about their potential victims. They will ask victims to confirm banking details or other sensitive information such as ID numbers.

“Given the shift towards online banking, many scammers will call their victims, claiming they need to perform an important action on their online banking profile. These scammers are often tech-savvy and can remotely access a victim’s compromised mobile device, triggering a technical issue to create a sense of urgency or panic. The victim then feels compelled to follow the scammer’s prompts, believing it is necessary to secure their device. Armed with this access, scammers can cause significant financial damage,” warns Retief.

A new modus operandi involves scammers calling victims and asking them to move money into a ‘safer’ or ‘higher-interest-bearing account.’ “Victims unknowingly transfer their money into the scammer’s account,” Retief adds.

A Common Scourge

Nerosha Maseti, Lead Ombudsman for the Banking Division of the National Financial Ombud Scheme (NFO), notes that complaints related to banking scams have been and continue to be the biggest contributors to formal complaints at the NFO’s banking division.

“In 2023, out of the 8,521 formal cases opened at the Ombudsman for Banking Services (predecessor to the NFO banking division), 3,380 or 43.47% were categorised as fraud,” says Maseti. The complaints are prevalent across the industry, and as the global banking landscape changes—with branch networks shrinking, digital payments increasing, and payments being processed within seconds—fraudsters are finding new ways to bypass bank controls.

Maseti explains that, during investigations, the NFO typically determines whether there was wrongdoing or negligence on the part of the bank that caused or contributed to the customer’s losses. If it is found that the bank could have prevented or mitigated these losses but failed to do so, the NFO has the power to recommend a refund for the portion of losses that could have been prevented.

However, Maseti cautions, “Our starting point is that the bank customer is liable for all transactions they perform voluntarily or that occur using the customer’s confidential access details. Liability only shifts to the bank once fraud or compromise of these details has been reported to the bank. Only then is the bank expected to take immediate steps to prevent further losses.”

Tips on How to Prevent Being Scammed

Consumers must remain vigilant and aware that they are ultimately responsible for any transactions made on their accounts, no matter how convincing the scammer appears.

Here are essential tips to consider:

• Ignore SMS or email notifications that ask you to follow a link and provide your username and password.
• Do not store banking credentials on your smartphone.
• Do not let your browser save banking passwords.
• Ensure your banking credentials are unique and not used for other websites, email accounts, or apps.
• Before selling your phone, ensure all your details are removed, your Banking App is uninstalled, and the phone is reset to factory settings.
• Never leave your smartphone unattended while logged in.
• Use two-factor authentication whenever possible to enhance the security of your login.
• Avoid using pirated software or compromising your device’s security, as it can allow attackers to spy on you without your knowledge.
• Install a reputable anti-malware solution and keep it updated.
• Do not access your banking app in busy public places or while waiting for e-hailing services.
• Avoid performing financial transactions on unsecured public Wi-Fi networks.

A Major Tool: Yima

To combat fraud, the SAFPS launched Yima to provide a proactive approach to fraud prevention.

“Yima allows South Africans to report scams and scan any website for vulnerabilities. Consumers can also educate themselves on how to identify scams. These tools enable users to surf the internet safely, access key products such as online banking, and make their daily lives more secure,” says Retief.

The website’s key feature is the ability to report a scam incident or any suspicious activity to the SAFPS. Users can also access a scam hotline to report fraud incidents to their banks and the South African Police Service (SAPS).

Protective Registration: Added Security

One of the most essential services offered by the SAFPS is Protective Registration. This service is free and protects individuals against future fraud. When consumers apply, the SAFPS alerts its members to take additional care when handling that individual’s details, providing an added layer of protection.

“If you want to be proactive in the fight against fraud, the SAFPS is here to serve you. Visit www.safps.org.za and click on the ‘Apply for Protective Registration’ tab. You’ll be issued a confirmation letter via email, adding another layer of protection against potential ID fraud,” Retief advises.

Contact Information

For more information, contact the Southern African Fraud Prevention Service (SAFPS):

• Help-Line: 011 867-2234
• Yima Hotline: 083 123 SCAM (7226)

For media enquiries, contact:

• Lola Lazarus
• Bullion PR & Communication
• Cell: 083 271 5336
• Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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