Allan Gray festive season warning for South Africa

South Africans tend to become less vigilant during the festive season, making the life of fraudsters far easier when targeting unsuspecting victims.

Personal information is valuable, but we are often required to disclose our details frequently to access our bank accounts and investments.

Fraudsters and cybercriminals know that South Africans will share more information unwittingly when they are in holiday mode.

If we take precautions to protect our personal information and stay aware of possible threats, we can likely reduce the chances of falling prey to scams during the holiday period.

Renita Govender from Allan Gray has thus shared some tips to help investors safeguard their personal information:

Be wary of sharing your personal information

Often fraudsters impersonate financial service providers and other legitimate organisations in an attempt to get hold of one’s personal information.

They will use SMSs, fake websites, emails and phone calls.

After acquiring this information, scammers can pull off a series of scams.

“As a rule of thumb, you should be mindful of sharing your personal information, particularly if you did not initiate the interaction, and never disclose your passwords and one-time passwords (OTPs).”

Common red flags include:

• A sense of urgency for you to respond

• Not being addressed by name (e.g. “Dear client” or “Hi Sir/Madam”)

• Poor spelling and grammar mistakes

• Incorrect contact details for the service provider (you can check these details against the information provided on the organisation’s official website)

Phishing attempts

“Tis the season for bargains and great deals. Phishing remains the most common way cybercriminals prey on victims, and the increasing popularity of online shopping and promotions makes it easier for cybercriminals to trick us.”

One should thus avoid clicking on links or downloading attachments from unfamiliar sources.

“Your email and SMS inboxes are likely to be filled with amazing offers from your favourite brands. Before you click on any links, hover over them to confirm that the URLs are legitimate.”

“If the URL differs from the text in the email body, it may be a phishing threat. Rather type URLs directly into your browser or visit the official website to access offers.”

Cybercriminals often will have an email address that looks very similar to a trusted email address, e.g. info@allengray.co.za instead of info@allangray.co.za.

South Africans should always check if the email addresses match up against those provided on the organisation’s official website.

Transact with reputable retailers and service providers

“When making online payments, ensure that you are dealing with legitimate, reputable service providers and retailers that have secure payment facilities, as fraudsters often set up websites that resemble trusted sites in order to get your banking details.”

“You can enable banking notifications that alert you to payments made from your account. Immediately report any OTPs you did not request and fraudulent activity to your bank.”

If one is unsure if the online retailer is legitimate, they should do an online search for their official website and check customer reviews.

Too good to be true

“Fraudsters are aware that many people receive bonuses and other cash lump sums during this time of the year. Be wary of anyone who approaches you with an opportunity to generate high returns on an investment in a short period, while requiring little to no effort from you.”

“To avoid dubious investments, only engage with licensed financial advisers and reputable, experienced investment managers registered with an industry body like the Financial Sector Conduct Authority.”

Investment managers are usually transparent on how returns are generated and are clear on the level of risk that you are taking on. They are also realistic about the range of returns you can expect to achieve.

“It is usually very difficult to recoup losses from fraudulent schemes, therefore it is important to stop fraud before it happens.”

“Trust your instincts: If something feels off, proceed with caution, take your time and do some research before taking any action. It is better to be overly cautious and miss out on a bargain or compelling investment opportunity than to lose your hard-earned money to a scam.”

Read: How much you’ll save on your bond after the latest interest rate cut in South Africa