South Africa, like many other countries, is grappling with a range of sophisticated scams targeting individuals and businesses. These scams exploit trust, confusion, and systemic vulnerabilities. By understanding how they work, we can take proactive steps to mitigate the risks. Below, we explore the most common scams in South Africa, their mechanisms, and strategies to stay protected.
South African mobile networks cracking down on scam calls
1. Shipping Scams
How They Work:
Fraudsters pose as legitimate sellers offering goods at attractive prices. Buyers are asked to pay a deposit or full payment upfront.
Goods are never delivered, and the fraudsters disappear once payment is made.
In some cases, scammers claim parcels are stuck at customs and demand additional fees.
Infamous Example:
The South African Post Office was once notorious for parcel theft, where parcels were either never delivered or arrived tampered with.
Mitigation Tips:
Verify the seller’s reputation before making payments, especially for online transactions.
Use trusted e-commerce platforms with buyer protection policies.
Avoid making upfront payments for goods from unknown vendors.
If a deal seems too good to be true, it likely is.
2. ATM Scams
How They Work:
Scammers tamper with ATMs by installing card skimmers or placing fake keypads.
They confuse users by switching the ATM language to something unfamiliar or activating cardless withdrawal options.
Victims inadvertently provide their PINs, allowing scammers to access their accounts.
Mitigation Tips:
Always use ATMs in well-lit, secure areas.
Be cautious of strangers offering assistance.
If the ATM behaves unusually (e.g., language change), cancel the transaction and report it immediately.
Cover your hand while entering your PIN.
3. Phone Bill Scams
How They Work:
Fraudsters subscribe mobile numbers to Value-Added Services (VAS) like ringtones, games, or horoscopes without the owner’s consent.
Mobile phone balances are rapidly depleted due to recurring charges.
Mitigation Tips:
Regularly check your mobile account for unauthorized subscriptions.
Contact your network provider to disable VAS subscriptions unless explicitly authorised.
Be wary of clicking on suspicious links or replying to unsolicited messages.
4. Invoice Scams
How They Work:
Fraudsters intercept email correspondence between businesses or clients.
They alter invoices, changing banking details to those controlled by the scammers.
Payments are made to the fraudsters instead of the intended recipient.
Mitigation Tips:
Always verify banking details with a phone call to a trusted contact.
Use secure email services and encrypt sensitive communications.
Educate staff about phishing attacks and the importance of vigilance.
Implement two-factor authentication (2FA) for email accounts.
5. Investment Scams
How They Work:
Scammers lure victims with promises of high returns, often tied to Bitcoin or other cryptocurrencies.
These schemes are typically pyramid schemes where returns depend on recruiting more participants.
Early investors may see returns, fueling trust, but the scheme eventually collapses, leaving most participants out of pocket.
Infamous Example:
South Africa has witnessed large-scale scams like MTI (Mirror Trading International), one of the world's largest cryptocurrency scams.
Mitigation Tips:
Be skeptical of investment opportunities promising guaranteed high returns.
Verify the legitimacy of investment companies with regulatory bodies like the Financial Sector Conduct Authority (FSCA).
Avoid schemes that emphasise recruitment over actual investment strategies.
6. Card Scams
How They Work:
Mitigation Tips:
Use ATMs and card readers in trusted locations.
Monitor your bank account for unusual transactions.
Enable transaction alerts for real-time monitoring.
Consider using tap-and-go payments to avoid swiping your card.
Reference: Card skimming warning for South Africans
7. SIM Swap Scams
How They Work:
Criminals collude with mobile operator staff to fraudulently perform SIM swaps.
Once they control your SIM, they intercept one-time passwords (OTPs) and access your bank accounts.
Often involves insider fraud within mobile operators and banks.
Mitigation Tips:
Register for SIM swap notifications with your mobile provider.
Use banking apps that provide additional layers of security beyond OTPs.
Notify your mobile provider immediately if your phone loses signal unexpectedly.
How South Africans Can Stay Ahead
Awareness:
Regularly educate yourself and others about emerging scam techniques.
Technology:
Use strong, unique passwords for online accounts.
Enable two-factor authentication wherever possible.
Install antivirus and anti-phishing software.
Report Scams:
Report incidents to relevant authorities, such as:
Verify:
Always verify suspicious communications, especially if they involve requests for payment or sensitive information.
Read about other common scams:
Wrap
Scams in South Africa reflect both technological vulnerabilities and human psychology. While scammers are becoming more sophisticated, adopting proactive measures can help mitigate the risks. By staying vigilant and using available tools, South Africans can protect themselves from these threats and hold scammers at bay.
