Standard Bank fraud warning

As banking fraud and scams continue to increase, it is more important than ever for consumers to be aware of threats to their finances. 

According to the Southern African Fraud Prevention Service (SAFPS) 2024 fraud statistics, reported fraud incidents increased by 32% in the previous year. 

Banking fraud contributed to 45% of these incidents, followed by the microfinance sector at 19% and retail at 14%.

BusinessTech spoke to Standard Bank to hear which threats they are seeing at the moment, and how consumers can avoid them.

Standard Bank explained that they are taking measures to combat these scams. 

Clients can now easily log into Online Banking by scanning a QR code or approving a Push Notification via the app, eliminating the need to enter a password. 

The bank also actively prevents attempted fraud by declining suspicious transactions before they reach clients’ accounts, helping to safeguard their funds. 

Furthermore, Standard Bank is committed to increasing fraud awareness through various channels, including in-app messages, Internet Banking banners, emails, social media, and shopping mall activations. 

These efforts empower clients with essential information to stay safe while banking. 

Consumers can also keep up to date on the latest scams on the Standard Bank’s Bank Security Centre Scams page, or the South African Fraud Prevent Services scams awareness pages.

Standard Bank also explained that consumers can take several actions to detect these threats and protect themselves.

Vishing

First, they warned that vishing, a type of social engineering, is a prevalent form of digital fraud currently. 

The customer will receive a phone call from someone claiming to be from their bank’s fraud department, claiming their account or funds are at risk. 

They instruct you to perform an Instant Money transfer for “authentication” or to reverse debit orders or unauthorised transactions. 

“The Instant Money may be to your own number or an alternative number which may reflect as Standard Bank on caller identification apps.”

Alternatively, you might be told to move funds to a “secure account” for safekeeping, and are provided with an account number to complete the transaction. By following these steps, you inadvertently send money to fraudsters.

Standard Bank explained that a telltale sign that this fraud is taking place is the sense of urgency in the phone call.

This gives the customer no time to think clearly and makes them more likely to comply with the fraudster’s instructions.  

Change of banking details scam

According to Standard Bank, this scam typically involves intercepting invoices or banking information sent via email. Fraudsters alter the banking details on the invoice to redirect payments to their accounts. 

This often occurs through small changes in the sender’s email address or domain, tricking recipients into believing the email is legitimate

As a result, funds are transferred to the fraudsters instead of the intended recipient.

To avoid this scam, Standard Bank advises that consumers do the following:

• Verify Email Addresses: Always double-check email addresses for slight spelling changes or domain variations that may indicate fraud.
• Confirm Changes Directly: Contact the supplier or service provider using known contact information (not the one provided in the email) to verify any changes to banking details.
• Look for Inconsistencies: Be alert to inconsistencies in invoices or communications, such as unusual formatting or unfamiliar terms.
• Use Secure Communication: When discussing sensitive information, use secure communication methods rather than email, if possible.
• Educate Employees: If applicable, train staff to recognise phishing attempts and verify any changes to banking information.
• Monitor Accounts Regularly: Regularly review bank statements for unauthorised transactions and report any discrepancies immediately.

Investment scams

Job task scams, a type of investment scam, are also rife at the moment, the bank said. 

“Fraudsters may contact you via social media platforms, email or a call where they offer you a secondary income opportunity where the job comes in the form of tasks.”

“WhatsApp remains the primary communication channel, either as the point of first contact or once the target is hooked, the fraudster migrates the conversation to the Telegram platform.”

After completing tasks, scammers typically ask victims to make a deposit or pay a fee in cryptocurrency to release funds. Initially, victims may receive small returns to build trust, but these amounts will fall far short of the promised returns.

Eventually, scammers will claim they can’t release the funds unless additional tasks are completed or more deposits are made, leading victims to realize they’ve lost a significant amount of money.

To avoid this scam, Standard Bank suggests that consumers do the following: 

• Verify the Source: Always check the credibility of any investment opportunity before engaging. Research the company and its representatives through official channels.
• Be Cautious of Unsolicited Offers: Avoid engaging with unsolicited investment proposals, especially from unfamiliar contacts on messaging platforms.
• Avoid High-Pressure Tactics: Be wary of anyone urging you to make quick decisions or investments. Legitimate opportunities allow time for research and consideration.
• Don’t Share Personal Information: Never share sensitive personal or financial information through messaging apps.
• Use Official Channels: Stick to verified, official communication methods for discussing investments rather than moving conversations to unsecured messaging apps.
• Seek Professional Advice: Consult a licensed financial advisor before making any significant investment decisions.
• Trust Your Instincts: If something feels off or too good to be true, it’s essential to trust your gut and proceed with caution.

Vehicle purchase scams

“Vehicle purchase scams are prevalent, with fraudsters using reputable auctioneer company names to lure victims,” standard Bank said. 

“This is done through Facebook marketplace and through fake websites as the primary first point of contact between the victim and the fraudsters.”

Often, the vehicle will be sold at a discounted price to lure the victim into paying the initial deposit. The fraudster will then put pressure on the buyer to pay the rest of the funds or risk losing the deal. 

According to Standard Bank, consumers should do the following to avoid these scams:

• Research the Seller: Verify the seller’s identity and reputation through reviews and ratings, especially if found on platforms like Facebook Marketplace.
• Inspect the Vehicle: Always arrange an in-person inspection and consider having a trusted mechanic check the vehicle before purchasing.
• Use Trusted Platforms: Stick to well-known and reputable websites for vehicle sales to minimise the risk of encountering scams.
• Avoid Upfront Deposits: Be cautious of sellers requesting large upfront deposits.
• Be Wary of Deals Too Good to Be True: If a vehicle is priced significantly lower than market value, it’s likely a red flag.
• Communicate Through Official Channels: Use official contact details for any correspondence and avoid sharing personal information over unsecured platforms.
• Trust Your Instincts: If something feels off or you feel pressured to make a quick decision, take a step back and reassess.

Goods scams

Finally, the bank warned against goods scams, where fraudsters list items at highly discounted prices to attract buyers on Facebook Marketplace. 

This tactic puts pressure on potential victims to make hasty purchases, fearing they will miss out on a great deal. 

Once the buyer pays, the goods are never delivered, leaving the victim out of pocket while the scammer disappears with their money. 

Standard Bank gives the following advice on how to avoid this scam:

• Be Wary of Unusually Low Prices: If a deal seems too good to be true, it probably is. Research the market value of the item to spot red flags.
• Inspect Before Purchase: Thoroughly inspect the item before completing the transaction to ensure it matches the description.
• Avoid Upfront Payments: Be cautious of sellers asking for deposits or full payment before you have the item in hand.
• Trust Your Instincts: If something feels off or if the seller pressures you, walk away from the transaction.

Read: Warning over invoicing fraud in South Africa – double check your emails