Nedbank joins the chorus of warnings for South Africa

Nedbank is the latest financial services provider to warn customers about Black Friday scams in the country.

Black Friday in 2024 is expected to generate more consumer interest in South Africa than in previous years, with studies from Capital Connect showing it could boost the local economy by R88 billion. 

However, in a message to clients, Nedbank said that online shopping security should be at the top of their minds, with Black Friday and Cyber Monday fast approaching.

Nedbank is not the first bank to offer this warning, with many expecting a rise in online fraud.

Ulrich Janse van Rensburg, Chief Fraud Strategy & Analytics Officer at Absa Everyday Banking, previosly warned about deposit scams. 

Although this is a common scam, it tends to increase during Cyber Monday and Black Friday. 

In these scenarios, potential customers see offers that seem too good to be true for online purchases

Once they make a deposit for these enticing deals, they later find out that the products don’t exist and that their money is gone. 

When one realises that they’ve been scammed, the funds have already left your account, making it a challenge to recover their losses.

Since consumers are expecting sales on Black Friday and Cyber Monday, they may be especially susceptible to believing that these deals are legitimate. 

These scammers also use a sense of urgency as a tactic, as they try to get their victims to act quickly and make payments without thinking clearly.

Taking advantage of the prevailing sense of urgency during Black Friday and Cyber Monday sales, scammers typically urge buyers to provide immediate deposits or make advanced payments.

Belinda Rathogwa, Standard Bank’s Head of Digital and eCommerce, also recently noted that there has been a broader shift in consumer behaviour toward more convenient, with Apple Pay, Samsung Pay, and Google Pay accounting for 37% of payments in 2023.

That said, Rathogwa warned that cybercriminals see this shift as an opportunity, prompting them to target online shoppers during Black Friday
She also warned that scams on social media are getting more persuasive, which is a particular concern heading into Black Friday.

Scammers also engage in phishing attacks by sending emails disguised as legitimate entities like retailers, banks, or streaming services.

These emails contain hyperlinks to fake web pages meant to acquire personal details like usernames and PINs.

Certain fraudsters also convince victims to follow harmful links via rewarding initial purchasers.

How to avoid been scammed

Amid the likely rise in Black Friday scams, Nedbank shared the following tips so that South Africans can keep themsleves:

• Never share your card PIN, expiry date or CSC number (the 3- or 4-digit security number) over the phone or on websites accessed via links in emails or text message. We will never ask for these details to reverse a fraudulent transaction.

• Carefully read banking notifications and notify your bank of suspicious transactions.

• Use virtual cards for one-time online payments and cancel them after use. You can have up to 5 virtual cards at a time.

• If your mobile device is lost or has been stolen, notify your bank immediately. Nedbank customers must deactivate the Money app and remove digital wallet tokens linked to your card.

• Suspect a fraudulent SIM swap? Contact your service provider to block the SIM card.

• Avoid online shopping or banking over public wifi or unsecured networks.

• Be aware of new or unknown online retailers

• So some research and check their online reviews.

• Don’t enter your card information on websites with unrealistically low priced products and have T&Cs that automatically subscribe you to long term monthly payments. Always read the T&Cs.

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