Discovery Bank fraud warning

Discovery Bank has issued a warning to South Africans about a sharp increase in “vishing” scams—a form of banking fraud that exploits human vulnerability and trust.

The bank sent an alert on Monday (20 January), highlighting a new and increasingly deceptive tactic employed by fraudsters to trick individuals into authorising fraudulent transactions.

Vishing, short for “voice phishing,” involves criminals posing as legitimate representatives of financial institutions over the phone.

These scammers manipulate victims by creating a sense of urgency and fear, pressuring them into revealing sensitive information or performing actions that compromise their accounts.

While vishing scams are not new, the sophistication and frequency of these attacks have escalated dramatically in South Africa, mirroring global trends in banking fraud.

Discovery Bank’s latest warning outlines a new approach scammers use to exploit their victims.

According to the bank, fraudsters initiate the scam with an SMS that appears to come from a legitimate Discovery Bank account.

The message claims that the recipient’s FICA information—a regulatory requirement to verify banking customers—is incomplete.

Unsuspecting individuals who respond to this message are then contacted by the fraudsters, who pose as Discovery Bank employees.

During the call, they use high-pressure tactics to convince the victim that their account is at immediate risk.

The scam escalates when the fraudsters instruct victims to approve in-app authorisation messages, which, in reality, facilitate fraudulent transactions.

In some cases, the scammers go a step further, asking victims to load a beneficiary account they provide—a clear red flag.

Discovery Bank said it will never ask customers to perform these actions, underscoring the need for vigilance.

The rise in vishing scams is not unique to Discovery Bank. Across South Africa, banks and financial experts have reported a significant surge in similar fraud cases.

The South African Banking Risk Information Centre (SABRIC) recently highlighted that fraudsters are becoming increasingly adept at using technology to mimic official communication channels.

This makes it more difficult for individuals to discern between legitimate and fraudulent interactions.

SABRIC’s 2024 report on banking fraud revealed a 40% year-on-year increase in vishing-related incidents, making it a growing threat to banking customers nationwide.

Experts attribute the rise in these scams to several factors, including South Africa’s high levels of digital banking adoption and the persistent economic challenges that drive some individuals towards criminal activity.

The use of social engineering—psychological manipulation to gain access to confidential information—is at the heart of these schemes.

Tips to reduce your risk of becoming a victim

Fraudsters exploit emotions like fear, urgency, and trust to bypass the victim’s critical thinking and gain access to their accounts.

To help customers protect themselves, Discovery Bank and other financial institutions have provided a set of practical tips:

1. Verify the Source: Always verify the identity of the person or institution contacting you. Use official contact details obtained from the bank’s website or other trusted sources.
2. Be Skeptical of Urgency: Scammers often create a false sense of urgency to pressure victims into making hasty decisions. Take the time to evaluate the situation calmly.
3. Never Share Sensitive Information: Legitimate banks will never ask for confidential information such as your PIN, password, or one-time PIN (OTP) over the phone or via SMS.
4. Reject Requests for Authorisation: Do not approve in-app authorisation messages or load beneficiaries unless you initiated the transaction and are certain of its legitimacy.
5. Monitor Your Accounts: Regularly check your bank statements and transaction history for any unauthorised activity.
6. Report Suspicious Activity Immediately: If you suspect fraud, contact your bank immediately using official channels to secure your account and report the incident.

As technology continues to evolve, so too do the methods used by fraudsters to exploit unsuspecting victims.

Discovery Bank’s alert serves as a timely reminder for South Africans to remain vigilant and informed.

By understanding the tactics employed in vishing scams and adhering to best practices for online and mobile banking security, customers can significantly reduce their risk of falling victim to this pervasive threat.

Read: Big fines for South Africans using credit and debit cards wrong