Standard Bank warning to South Africans who use their phones and social media
Criminals are impersonating banks and banking officials on social media and using fake apps to gain access to bank accounts remotely.
This is the warning from Standard Bank, which flagged the fraud tactics in a statement published on Tuesday (25 February).
“Standard Bank cautions clients and the public to be wary of fake social media profiles and deceptive apps that impersonate bank officials to scam consumers and businesses,” it said.
At the beginning of this month, Standard Bank flagged a fraudulent WhatsApp group circulating on social media and claimed affiliation with an investment app called SBG SI Trader.
The app falsely claims connections with Standard Bank, SBG Securities, and other related platforms, including SBG Securities Online Share Trading.
It also mentions the bank’s Financial Sector Conduct Authority operating license and one of its employees, David Hodnett.
“We would like to alert you that this information is fraudulent. Please remain vigilant to avoid falling victim to phishing scams, cybercrime, or unauthorised access by fraudsters,” the email read.
“We encourage you to also be cautious of other social media, email, or phone (WhatsApp or SMS) communications requesting your personal information.”
Standard Bank is not alone in its warning; several of South Africa’s banks have cautioned clients about similar fraud tactics.
Other banks have warned that fraudsters call potential victims pretending to be from the bank or a reputable company.
They ask for your digital banking login credentials, passwords, PINs or OTPs. They also say that the security of your account is under threat and urge you to make payments to secure your account.
They make the situation seem urgent and stress that they need your banking details urgently to save your money from being stolen.
However, they will use your details to access your account and steal your money. Your bank will never ask for your bank PIN and password.
Impersonation fraud at the highest levels
The Southern African Fraud Prevention Service (SAFPS) highlighted last year that Impersonation fraud had surged by 337% compared to the past year.
It added that the levels recorded are at the highest level as criminals increasingly open or take over accounts using stolen identities.
“This increase is alarming and indicative of how South Africans are becoming easy targets for fraudsters and scammers who are highly motivated to find their next victim,” said SAFPS CEO Manie van Schalkwyk.
According to Van Schalkwyk, the fraud landscape has steadily increased over the past five years, making this one of the top risks South Africans face daily.
“Once again, certain sectors are more open for fraudsters than others. Banking fraud made up 45% of the fraud incidents reported last year.
“This was followed by the microfinance sector (19%) and the clothing retail sector (14%, indicating that financial institutions and the retail sector are under significant pressure regarding fraud,” Van Schalkwyk added.
Regarding what Standard Bank notes as “deceptive apps”, other experts have warned the public of the use of malicious software to gain access to banking information.
If you’re tricked into downloading malware onto your phone, a scammer can steal your mobile banking username and password.
According to the State of Mobile Finance App Security report, 77% of mobile banking apps have at least one security vulnerability that could lead to your personal data being leaked.
To protect yourself and to limit your risk of becoming a victim of fraud, Standard Bank provided several proactive safety tips:
- Verify authenticity: Always verify the authenticity of any app or communication claiming to be from a financial institution.
- Do not share confidential information: Never share credentials such as PINs, passwords, and one-time passwords (OTPs) with any third party.
- Report suspicious activity: If you encounter any suspicious activity or believe you have been targeted by a scam, report it immediately to your financial institution and the relevant authorities.
- Use strong passwords: Ensure that you use strong and unique passwords for your online or digital banking platforms.
- Enable two-factor authentication: Where possible, enable two-factor authentication for an added layer of security.
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