FNB fraud warning
FNB says it has seen a slight reduction in scams but warns that criminals are getting more sophisticated and using new advanced tools to commit fraud in South Africa.
According to the Global State of Scams report by the Global Anti-Scam Alliance, victims lost over $1 trillion to fraudulent activity in 2024.
Perpretrators are increasingly using new technology, such as Generative AI, deepfakes, and botnets, on victims, allowing them to cast their nets even further and wider.
Despite the growth of scammer activity globally, FNB said that it experienced a slight drop in the number of reported scams in FY2024.
Roshan Jelal, Head of Fraud at FNB Commercial, attributed this to the impact of the bank’s various prevention and detection strategies.
However, the slight improvement does not mean customers can afford to get complacent.
FNB warned that new instant payment methods and other developments in the banking space will likely lead to increased scam activity. With faster payments comes faster fraud, it said.
“With scammers continuing to evolve and leverage the latest technologies, scams will remain a key risk theme for the foreseeable future as they affect people and businesses regardless of age, income level, education, complexity, and background,” said Jelal.
“To counter this, a multi-sector approach is required, involving collaboration with industry bodies, regulators, governments, and social media platforms.”
In terms of the latest scams, he said that online shopping, compromised business emails, and Ponzi/investment schemes are the most prevalent across the banking industry.
Key scams to watch out for
Jelal outlined what South African consumers should look out for when dealing with these scams:
Online shopping scams
Regarding online shopping scams, Jelal stated that customers need to stay informed about the common scams hitting them, as it helps identify red flags.
South Africans should only use reputable sites and thoroughly research any seller or service provider before purchasing or paying. Payments should not be made until one is sure it is a reputable supplier.
Goods and services advertised at massively discounted prices are often misleading – “if it is too good to be true, it usually is.”
Business Email Compromise Scams
South Africans should be careful where they list their email addresses on public platforms, as scammers can harvest them.
Urgent and unplanned payment instructions should be treated with caution. “It is imperative to authenticate such a request directly with the person giving such a directive,” said Jelal.
Any request for a change of banking details should be verified by contacting the requestor using details in historical records.
Ponzi Schemes
For Ponzi Schemes, South Africans should be cautious of opportunities that promise a high rate of return with little or no risk. All investments have some risk, especially short-term investments with high returns.
South Africans should also look for investment schemes that are not registered and licensed by the relevant regulatory authority. All financial service providers must be registered with the FSCA.
Investment opportunities that lack transparency, a clear business model, or are exceedingly difficult to understand should also be considered.
“Never rush into investment opportunities; it is wise to take as much time as required to authenticate the entity and related parties.”
Other tips
Christopher Boxall, Head of Card Transact, Industry and Fraud Detection at FNB, also gave the following tips for South Africans to keep safe:
- Do not click on email or SMS links, especially if your phone has been stolen. Fraudsters often send smishing SMSes to encourage you to divulge your cloud credentials.
- If you are meeting someone you have been chatting to online, it’s safer not to take all your banking channels with you.
- If you are called by someone claiming to be from the bank, don’t panic. Fraudsters rely on people acting hastily due to a sense of panic.
- Pay careful attention to the wording of OTP requests.
- Take note of the card and digital safety measures recommended by your financial institution.
- Keep software and devices up to date.
- Verify contact details.
- Use safer and more convenient ways to pay.
FNB is just one of several financial service providers highlighting scams in South Africa. Nedbank and Standard Bank have highlighted increased tax scams, while WesBank has highlighted fake auctions.
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