Black Friday scam alert for South Africa
With Black Friday just around the corner, consumers are urged to be especially vigilant against purchase scams, which are expected to spike during this period.
There has been a notable increase in fraud this year, and according to the Southern African Fraud Prevention Service, there has been a 32% surge in fraud incidents this year.
Goods scams, in particular, are a prominent threat to consumers at the moment.
Major South African banks including Absa, Standard Bank, Discovery Bank and Capitec have all warned that they are seeing a rise in similar scams.
Typically, goods are advertised at highly discounted prices to entice consumers.
However, the goods do not exist, and when the customer makes the purchase, the seller will stop responding and potentially even block them, disappearing with their money.
Fraudsters use social media to commit this scam, with Facebook Marketplace being especially popular with these criminals.
Scammers may also create fake e-commerce websites or send phishing emails that mimic well-known brands, tricking people into handing over personal information and bank details.
These websites may even appear to be from well-known retailers, with small deviations in the domain which are hard to spot.
Ulrich Janse van Rensburg, Chief Fraud Strategy & Analytics Officer at Absa Everyday Banking, specifically warned about deposit scams.
He explained that although this has been an ongoing scam, it tends to increase during events like Cyber Monday and Black Friday.
Typically, you’ll see offers that seem too good to be true for online purchases.
Once you make a deposit for these enticing deals, you later find out that the products don’t exist, and your money is gone.
By the time you realise you’ve been scammed, the funds have already left your account, making it difficult to recover your losses.
Since consumers are expecting bargains on Black Friday and Cyber Monday, they may be especially susceptible to believing that these deals are legitimate.
Creating a sense of urgency is a common tactic that fraudsters use to try and get victims to make payments without thinking clearly and realising they may be at risk.
Considering that consumers may already feel rushed on Black Friday and Cyber Monday, it is likely that scammers will use this tactic to get their target to comply with their requests for deposits and upfront payments.
The South African Banking Risk Information Centre (SABRIC) explained that consumers should look out for subtle errors like spelling mistakes in emails, which can signal a scam.
They should also be cautious of unfamiliar e-commerce sites, especially if they don’t redirect you to a 3D Secure page for payment confirmation.
By not reusing passwords across multiple sites and or storing your card details on shopping websites, customers can also protect themselves, according to SABRIC.
“Avoid sharing your personal information, online merchants don’t need your ID number or date of birth to process your order, but cybercriminals can use this to steal your identity.”
In order to avoid these scams, Standard Bank urged shoppers to 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.”
They also advised that customers should thoroughly inspect items before buying to make sure they match the description.
Upfront payments are another red flag that consumers should try and avoid.
“Be cautious of sellers asking for deposits or full payment before you have the item in hand.”
Finally, Standard Bank urged shoppers to trust their instincts in order to avoid these scams.
“If something feels off or if the seller pressures you, walk away from the transaction.”
With the right precautions, consumers can enjoy Black Friday without falling prey to fraud. However, as scams become increasingly sophisticated, it’s essential to stay informed and vigilant throughout the holiday shopping season.
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