Nedbank sends WhatsApp warning to customers

Nedbank has warned its customers to stay alert to fake adverts, some of which ask victims to open a WhatsApp chat.

In its latest fraud alert, the Big Four bank warned that fraudsters are posting fake investment scam adverts on social media.

These adverts promise unrealistically high returns with glowing reviews, many of which try to impersonate legitimate financial service providers.

If one responds to the advert, scammers often ask victims to download remote access software to their device, click on a link, or open a WhatsApp chat.

They often ask customers to enter their Nedbank ID login or card details, which they use to access their bank accounts. They may also ask customers to transfer money into an account.

Nedbank thus provided a series of tips for its customers to keep themselves safe:

• Invest with Financial Sector Conduct Authority (FSCA)-registered organisations only.
• Remember – credible organisations will never ask for your Nedbank ID login or card details.
• Be cautious of guaranteed high returns over a short period. Do independent research and don’t rely on reviews.
• Be cautious when you download software. You could be giving a fraudster access to your device.
• Deal with Nedbank via official websites and communication channels only.
• Report fraud to Nedbank immediately on 0800 110 929.

Standard Bank also recently warned its customers about a WhatsApp group, where scammers falsely associated themselves with Standard Bank, SBG Securities, and SBG Securities Online Share Trading. 

Standard Bank said that the information found on the group is fraudulent, adding that customers must be vigilant to stay safe from phishing scams.

A few weeks ago, Standard Bank warned its customers about potential WhatsApp scams, where scammers are posting fake hiring ads on social media platforms, including WhatsApp.

These ads will often promise high salaries for little work and upfront payments or commissions. Standard Bank said these issues should be immediate red flags for South African job seekers.

Given unemployment remaining over 30% and the high cost of living, fraudsters are thus targeting South Africans with job and investment scams due to desperation.

Standard Bank said that it understands the pressure individuals face to find employment. Fraudsters use this pressure to deceive and defraud job seekers.

Major restructuring at Nedbank

The latest scam warning follows another recent announcement from Nedbank, which said it would undergo a significant restructuring of its Retail and Business Banking (RBB) and Nedbank Wealth clusters.

The new structure will create the Personal and Private Banking (PPB), an individual/non-juristic focused cluster.

The entity will provide a full suite of products to individuals across its youth, entry-level, mass, middle, affluent and high-net-worth clientele.

It will also see the creation of Business and Commercial Banking (BCB), a juristic-focused cluster that will work on SMES, Commercial, and Mid-corp clients.

The group said BCB seeks to unlock accelerated growth opportunities via new compelling value propositions.

Nedbank Insurance and Nedbank Wealth Management will also be incorporated into PPB as the group looks to upsell to its current customers.

Elsewhere, the Asset Management business will move into Corporate Investment Banking. It will expand its product offerings and improve the business origination with a new client-centric model.

Nedbank Wealth will also cease to be a stand-alone cluster. These significant changes at the bank become effective from 1 July 2025.

“For clients, the reorganisation represents a transformative leap forward in how they will experience Nedbank,” said new CEO Jason Quinn.

“By unifying our personal and juristic business segments into distinct, focused clusters, we will be able to offer more seamless and integrated banking experiences.”

The news comes off after the group delivered an 8% increase in headline earnings to R16.9 billion for 2024, and saw its ROE jump to 15.8%.

Quinn noted that improved non-interest revenue, lower impairment charges and targeted expense management provided the basis for headline earnings growth.

With its basic share per share increasing by 11% to 3,239 cents per share, the group declared a full-year dividend of 2,075 cents per share, a 10% increase from the prior year.