Discovery Bank scam warning for South Africa

Discovery Bank has highlighted a popular “too good to be true” scam to its customers, joining a long list of financial service providers.

In a message to customers, Discovery Bank said that shopping for cheap online specials can be costly.

Discovery said that customers should beware of very low-priced offers.

“If it seems too good to be true, it probably is. Protect your money this holiday season.”

Discovery Bank offered the following safety tips:

• Don’t click on links to online shopping sites. Always type the URL manually.

• Only use the site’s own payment gateway!

• Don’t authorise transactions you didn’t start.

• Read purchase authorisation messages carefully before you accept, especially the currency and merchant.

• Enable notifications on your phone to get instant alerts and to see when money leaves your account.

• If your device is lost or stolen, notify your bank first!

• Log out of your banking app after use and keep your EFT and ATM limits low. Change limits in the banking apps.

• Beware of ATMs! Criminals watch for your PIN and device logins, then steal your card or device for fraud. They may tamper with ATMs to block your card and swap it with a fake one.

• In doubt? Call your bank’s Fraud team immediately.

Not the first

Discovery Bank is not the first bank to highlight the rise of scams during the festive period.

For instance, Standard Bank’s Fraud Risk Management team has observed several ways criminals try to deceive ATM users, especially vulnerable individuals like the elderly or those unfamiliar with other languages.

A common scam sees ATM language settings altered to confuse users, while another sees criminals activating the “cardless function” to disorient customers.

A frequent tactic during busy periods like the festive season is jamming card slots or PIN pads to steal cards or money.

“These methods are designed to create confusion and make it easier for fraudsters to steal people’s cards or money,” said Athaly Khan, Head of Fraud Risk Management at Standard Bank.

“Shoulder surfing,” where a criminal watches someone enter their PIN to steal it, is another common tactic.

“It’s not just at ATMs – beware anywhere you use your bank card or enter sensitive information.”

Khan said customers to always be aware of signs of tampering on ATMs or point-of-sale devices, as card skimming incidents have been reported.

Khan also highlighted the risk of vishing, which sees fraudsters use phone calls or voice messages to trick people into sharing personal information, including bank details or passwords.

This scam often targets vulnerable individuals, with scammers posing as bank officials, tax agents or investment firms.

Scammers trick victims into jeopardizing the safety of their bank accounts, often claiming that the account is at risk and urging them to transfer their money to a different account for “safekeeping”.

“A growing concern is victims approving one-time passwords (OTPs), which gives fraudsters access to their accounts. We advise customers to never share their credentials or transfer money at anyone’s request, even if they claim to be from their bank,” said Khan.

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