Fraud warning from the largest insurer in South Africa
Sanlam, South Africa’s largest insurer, has warned South Africans to be vigilant for scams this festive season.
The company stated that the international scamming ecosystem has evolved to industrial levels, leaving consumers vulnerable to sophisticated and difficult-to-spot scams.
Sanlam advised consumers to be extra cautious amid a sharp rise in impersonation and investment scams.
Financial institutions, regulators, and law enforcement partners have seen a notable rise in fraud cases over the past year.
Fraud cases involve fake investment opportunities, advance-fee schemes, and identity impersonation.
These scams are also becoming more sophisticated, convincing, and aggressive.
Sanlam stated that scammers are using the names and images of well-known brands and executives to lure victims.
Helen du Toit, Head of Forensics at Sanlam, said scammers are aware of the festive “spirit of spending” and will look to capitalise on it.
“They also know January can be financially difficult for many people, which makes consumers more vulnerable to offers of quick cash or seemingly ‘guaranteed’ returns,” said Du Toit.
Du Toit said that the global proliferation of highly coordinated and industrialised ‘scam compounds’ is not to be taken lightly, especially as they target the vulnerable, like the elderly.
A new wave of impersonation scams
One of the fastest-growing threats is the rise of fake investment groups on Telegram, WhatsApp and Facebook.
These groups will falsely claim to be run by credible institutions and well-known leaders, using sophisticated profiles, fabricated testimonials, and manipulated images of executives to create a sense of legitimacy.
In some instances, scammers will mimic official emails so convincingly that only a minute spelling error or an altered domain name gives them away.
The Financial Sector Conduct Authority (FSCA) issued a specific warning about scammers impersonating authorised Financial Services Providers, such as individuals claiming to be associated with Sanlam.
More than just social media
Outside of social media, Sanlam has also seen a spike in call-spoofing or vishing scams.
Criminals in these scams use technology to impersonate SARS, a bank, or another trusted institution to extract personal information.
“These scammers rely on panic or urgency,” said du Toit.
“They’ll claim there’s a problem with your account or that you’re about to miss out on an opportunity. Pressure is their strongest weapon.”
Business email threat growing
Sanlam noted that business email compromise (BEC) remains an escalating threat, with criminals infiltrating email accounts via weak or breached passwords.
They can then quietly monitor correspondence before intercepting payment instructions and inserting fraudulent banking details.
Criminals will infiltrate email accounts, often through weak or breached Gmail passwords.
Hidden forwarding rules or deleted messages make these attacks extremely difficult to detect.
How South Africans can protect themselves
Sanlam urges consumers to stay vigilant and approach any unsolicited financial opportunity with caution. It provided the following tips to help avoid scams:
- Reputable financial institutions will never ask consumers to invest via Telegram, WhatsApp, Facebook or direct messages.
- No executive, or any public figure, will personally offer investment deals or expedited returns.
- Avoid clicking on links in unsolicited messages and always verify email addresses and social-media accounts carefully.
- Never share personal information, such as ID numbers, banking details, or OTPs, over phone calls or chat apps.
- Look out for spelling errors, altered email domains, unusual sender names, unexpected attachments or mismatched links.
- If you are unsure, check with the FSCA or consult an accredited financial adviser.
The FSCA has urged the public to be alert to red flags, including unrealistic returns, pressure to act urgently, vague investment information, requests for additional payments, and the absence of an FSCA licence.
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