Discovery Bank fraud warning
Banking fraud and scams pose a significant threat to consumers, costing individuals and the economy billions annually.
According to the Southern African Fraud Prevention Service, fraud incidents have increased by 32%, with a particularly alarming 54% rise in impersonation fraud victims this year.
This means that it is more important than ever for customers to safeguard their banking and personal information.
BusinessTech spoke to Discovery Bank, to hear about the common banking scams and fraud they are seeing currently.
First, Discovery Bank highlighted the common “courier scam,” where clients awaiting a package receive a fake email or SMS requesting a small fee for the release or delivery of their goods.
These messages typically include a payment link. Once the client clicks the link and enters their card details (including the card number, CVV, and expiry date), the fraudster gains access to these details.
The scammer then uses this information to conduct online transactions.
If the site appears secure, clients may even unknowingly approve the fraudulent payment via InApp authentication, thinking they are simply paying for the delivery.
Discovery Bank also warned against purchase scams, which involve selling non-existent products or services on social media platforms.
Victims make payments for items listed on sites like Facebook Marketplace or Instagram, only for the seller to stop responding or block them once the payment is made.
They also cautioned against employment scams, which are also prevalent right now.
This entails fraudsters advertising employment opportunities, especially on social media platforms like Facebook, Instagram, and TikTok.
Victims are often asked to pay a small fee to secure a job. After this, they may be asked to make or receive further payments.
The funds they receive are usually from other victims of similar scams and are then transferred to other accounts at the instruction of the so-called employer.
Next, Discovery Bank explained that “vishing” is another common banking scam currently.
Fraudsters contact clients, posing as bank representatives, and inform them that their accounts have been compromised by fraudulent activity.
They offer assistance in reversing the transaction but, instead, trick clients into revealing their card details. Once the client shares their information, the fraudster uses it to make unauthorised transactions.
Again, clients may approve InApp authentication, mistakenly believing they are reversing a fraudulent charge.
Similar is phishing, which uses emails and links, and smishing, which uses SMS messages.
Clients receive these emails or texts that appear to come from reputable companies.
However, upon clicking the link, they are redirected to a fraudulent site where they are asked to enter their card details. These details are then stolen and used to carry out unauthorised payments.
Discovery Bank said that investment scams are also rampant at the moment.
These scams promise “high returns with little to no risk”.
Some are task-based, requiring the victim to invest money and then complete tasks such as promoting or liking social media content.
Others involve cryptocurrency, where clients believe they purchase legitimate cryptocurrency, but the transactions are fraudulent.
Finally, they warned about loyalty programme scams, where fraudsters send phishing emails or SMS messages claiming to be from a client’s mobile network provider, warning that their loyalty points are about to expire.
The message includes a link that leads to a fake site where the client is asked to enter their card details, either to pay for additional rewards or to cover the cost of delivery for prizes supposedly won through the loyalty programme.
Tackling these scams
While these scams pose a significant threat to companies and consumers, Discovery Bank explained that they are tackling fraud threats through a multi-faceted approach.
They proactively monitor fraud trends and use advanced fraud detection capabilities to identify and address potential risks early.
Additionally, they shut down reported and detected phishing sites and monitor the dark web for any client, bank, or employee details that may have been compromised.
The bank also utilises cutting-edge security features, including secure InApp authentication and biometric verification, to enhance account protection.
Client awareness and education campaigns are regularly distributed across various channels to inform customers about emerging fraud threats. Furthermore, Discovery Bank collaborates with industry bodies and other banks to address both current and emerging fraud risks, reinforcing its commitment to security.
Apart from these measures, they also explained that there are measures clients can take to protect themselves against banking fraud.
Below is Discovery Bank’s advice to clients on how they can avoid banking scams.
- Familiarise yourself with how your financial institution communicates
- Carefully read the InApp authentication notification before approving it
- Never provide personal information such as banking credentials, card numbers, OTPs over the phone or on suspicious sites
- Discovery Bank will never ask clients to click on a link to update their personal details or to assist in reversing a fraudulent transaction
- Use transactional notifications to monitor their financial activities
- If you are in doubt or suspect fraud on your accounts, contact the fraud line directly on 011 324 444 to verify transactions or report fraud
- Report lost or stolen bank cards and mobile devices to the fraud line on 011 324 444
- If a deal sounds too good to be true, then it probably is
- Stop! Think before you click – check that you are on the authentic/real site before entering any personal information, including banking details
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