Con artists and scammers are becoming increasingly clever at manipulating bank details and private information out of consumers – so know the risks, and the warning signs, says Richard Frost, Head of Consulting at Armata Cyber Security.
Fraud and scam numbers in South Africa are alarming. The Southern African Fraud Prevention Service (SAFPS) reported that fraud has increased by 32% in 2024 and, in 2023, 47.47% of the formal cases opened at the Ombudsman for Banking Services were labelled as fraudulent. The risks have been steadily increasing over the past few years as cybercriminals become increasingly sophisticated in their attack methods and strategies. It’s very easy to fall victim to fraud.
It is even easier when the stakes are raised during mega sale periods such as Black Friday and Cyber Monday. As timers and stocks tick down and the savings stakes are raised, it’s easy to make mistakes you’d never make on a normal day. It’s the psychology of ‘anticipatory regret’ – you don’t want to be the one who misses out on that spectacular saving, that last minute deal. Scams are designed to tap into the emotions of regret, fear, worry, and stress. ‘You’re about to miss the deal!’. ‘Your account has been compromised!’, ‘Please confirm your identity now or the sale will be cancelled.’
And scammers are smart when it comes to playing on these emotions. When you’re distracted or tired or excited, you’re not paying close attention to your online actions or to someone’s behaviours. It’s very easy to say that you wouldn’t be fooled by a fake call from your bank until it happens to you.
One scam that tends to focus on people who are less technologically advanced, such as the elderly, is when someone offers to help them at the ATM. Used to going into the bank and dealing with people to make a transaction, older people aren’t aware that the person putting their PIN into the machine isn’t a bank representative. It’s important to remember that nobody, especially a bank employee, should assist you with your PIN or card at an ATM. It’s a quick and easy way for them to steal your details.
Another growing risk, one that is very hard to detect, is faked calls from banks. The callers are scammers, but they have a lot of information about you because they’ve been working in collaboration with a member of staff in the bank. FNB has recently been in the news because an employee accessed customer accounts without permission, and Capitec has had to address issues around employees manipulating debit orders. When the email or the call is coming from someone within the financial institution, it’s easy to think it’s legitimate and hand over personal information.
If someone from a bank calls you to verify a purchase or to change your password or to make any kind of amends to your account, the best course of action is to tell them you will phone them back. Don’t use the number they give you because most financial institutions use a call centre and a legitimate employee won’t have a dedicated line, if they do, this is another warning sign. Instead, contact the call centre and verify that this is a legitimate issue before sharing your information.
When making purchases or selling goods on a market place or in person, it’s also important to be aware of how scammers perpetrate EFT fraud. They will do the EFT in front of you when they purchase the items you are selling and then, when they leave they will reverse the EFT. The proof of payment means nothing because the funds will stay in your account for only a few moments before going back to the payee. Ask for cash as this is the best way to ensure a physical transaction is not a con.
Finally, be aware of deals that are too good to be true. Flights, holiday accommodation, huge discounts – these are often faked so check the website and make sure that it is legitimate or that the company is real. Thanks to advanced AI, design and language tools, scammers can easily spoof a site and steal your information when you checkout with your purchase.
There are always companies promising special offers and great deals, so take your time with every purchase. Check the site, the URL, the security and the deals. Verify that anyone contacting you is legitimate, and prioritise your financial safety over that discount. Ultimately, you’ll save more money if you don’t spend any…
