{"id":794853,"date":"2024-10-10T13:00:00","date_gmt":"2024-10-10T11:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=794853"},"modified":"2024-10-10T13:01:35","modified_gmt":"2024-10-10T11:01:35","slug":"capitec-fraud-warning","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/794853\/capitec-fraud-warning\/","title":{"rendered":"Capitec warns about fraud and scams targeting customers in South Africa"},"content":{"rendered":"\n

Banking fraud and scams are becoming increasingly prevalent, and fraudsters are using more sophisticated tactics and taking advantage of social media.<\/p>\n\n\n\n

According to the Southern African Fraud Prevention Service, fraud incidents have surged 32% this year, and impersonation fraud victims have increased by 54%.\u00a0<\/p>\n\n\n\n

\u201cThe digital landscape is increasingly being exploited by sophisticated scammers targeting investors,\u201d Ren\u00e9 Basson, Head of Brand at Satrix, warned. <\/p>\n\n\n\n

\u201cWith the rise of fake investment platforms and social media impersonations, it’s crucial for South African investors to remain vigilant.\u201d<\/p>\n\n\n\n

BusinessTech spoke to Capitec to hear what the most common types of banking scams they are seeing are at the moment. <\/p>\n\n\n\n

\u201cThe most prevalent scams targeting consumers include authorised push payment fraud<\/strong>, where victims unknowingly initiate payments to fraudsters,\u201d the bank said. <\/p>\n\n\n\n

\u201cThis type of scam is leading to significant financial losses.\u201d<\/p>\n\n\n\n

Investment scams and Ponzi schemes<\/strong> are other common threats to consumers. <\/p>\n\n\n\n

\u201cFraudsters promise high returns with minimal risk, often leading victims to invest in schemes that are not legitimate,\u201d Capitec said. <\/p>\n\n\n\n

This fraud<\/a> occurs when scammers trick people into putting money into fake or misrepresented investments, such as stocks, bonds, or real estate. <\/p>\n\n\n\n

Fraudsters often pose as financial advisors or telemarketers, presenting themselves as trustworthy and pushing for quick decisions by creating a sense of urgency. <\/p>\n\n\n\n

Their goal is to earn your trust and get you to invest without asking too many questions.<\/p>\n\n\n\n

Ponzi schemes<\/a> are a type of investment scam where a scammer promises that they will invest your money and earn you large payouts.<\/p>\n\n\n\n

However, these returns are paid using money from newer investors, not profit earned.<\/p>\n\n\n\n

Similar to pyramid schemes, Ponzi schemes depend on a constant supply of new \u201cinvestors\u201d. <\/p>\n\n\n\n

Goods and services scams<\/strong> are also prevalent at the moment, Capitec said. <\/p>\n\n\n\n

\u201cVictims pay deposits or full amounts for goods or services that are never delivered.\u201d<\/p>\n\n\n\n

These scams tend to increase during events like Cyber Monday and Black Friday and often include deals which seem too good to be true.<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Capitec also warned against advance fee scams<\/strong>.<\/p>\n\n\n\n

\u201cThese scams require victims to pay a fee upfront for a job, loan, prize, or inheritance that doesn\u2019t exist. This includes job scams<\/strong>, often via platforms like WhatsApp and Telegram.\u201d<\/p>\n\n\n\n

\u201cVictims are lured by offers of easy money through simple tasks but end up paying fees to scammers.\u201d<\/p>\n\n\n\n

Stephen Schneider<\/a>, Associate Professor in the Department of Sociology and Criminology at Saint Mary’s University, explained that this fraud often involves fake solicitations from people posing as business representatives or government officials. <\/p>\n\n\n\n

They promise large amounts of money (usually millions) to be deposited into the target’s bank account. The victim is asked to pay a processing fee, typically via wire transfer, before receiving the funds. Once the fee is paid, the perpetrators disappear, and no money is transferred.<\/p>\n\n\n\n

These scams may exploit situations like civil wars, inheritance claims, or government fraud, making the victim believe the funds need to be secretly moved. <\/p>\n\n\n\n

Ultimately, though, no goods or money are ever delivered to the victim, Schneider said. <\/p>\n\n\n\n

Finally, Capitec warned consumers to watch out for Work-from-Home (WFH) scams<\/strong>. <\/p>\n\n\n\n

\u201cScammers trick victims into making multiple payments under the guise of investing or trading, often referred to as “Pig Butchering.”<\/p>\n\n\n\n

According to Indeed<\/a>, there are seven things that job-seekers can look out for to determine whether a job is a WFH scam:<\/p>\n\n\n\n

    \n
  1. The job is too good to be true.<\/li>\n\n\n\n
  2. There is little information on the company.<\/li>\n\n\n\n
  3. A second contact cannot confirm the legitimacy of the job offer.<\/li>\n\n\n\n
  4. There are warnings online.<\/li>\n\n\n\n
  5. The employer is overly eager to hire.<\/li>\n\n\n\n
  6. You have to pay to work.<\/li>\n\n\n\n
  7. The employer communicates poorly.<\/li>\n<\/ol>\n\n\n\n

    Prevention<\/h2>\n\n\n\n
    \"\"<\/a><\/figure>\n\n\n\n

    While these banking scams may be increasing in frequency, there are still things that consumers can do to protect themselves.<\/p>\n\n\n\n

    Below is Capitec\u2019s advice for how people can avoid these threats.<\/p>\n\n\n\n