Cebile Magongo | Developer | Strategic Business | Cash Investments | FNB | mail me |
The growing trend of stokvels and the seasonal withdrawals during the festive season requires members to be vigilant and careful. Often, stokvels are formed at the start of the year to enable spending in December. As a result, we observe most withdrawals during this period.
Since October 2023, we have observed year-on-year growth of 35% in the number of stokvels opened to date. This growth reflects how customers are embracing the power of collective savings.
Risks as members become targets for criminals
Savings from stokvels are used for various purposes, including groceries, school fees, stationery, and helping family and friends. They are also used for holidays. While saving in a stokvel is beneficial, it poses risks as members become targets for criminals.
This risk is particularly high during this time of year when individuals are receiving their contributions. Stokvel groups and members must stay vigilant against fraudsters and criminals eagerly waiting to scam or rob them of their contributions.
Criminals have become increasingly sophisticated in targeting stokvels and their members. This requires heightened awareness when sharing funds and spending in-store or online.
Stokvel safety and precautions for this festive season
Members should avoid falling victim to scams, such as fake calls or message alerts pretending to be from the bank or group members.
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Avoid cash withdrawals
It is advisable to process payments through safe digital channels. This safeguards money and helps stokvels save on cash-handling fees.
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Make digital payments at the final meeting
Consider processing all digital payments at the last stokvel meeting. This ensures funds are transferred into personal accounts before members leave.
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Keep meeting details private
Avoid announcing stokvel meetings or withdrawal dates on social media, to friends, or to family members. These details should remain exclusive to stokvel members.
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Avoid carrying large sums of cash
During peak season, refrain from carrying or travelling with large sums of money. If necessary, travel in large groups for safety.
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Stagger cash withdrawals
If not using digital channels, avoid withdrawing all funds simultaneously. Spread withdrawals over different days to ensure contributions remain safe.
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Withdraw cash during business hours
Make cash withdrawals only during business hours when security guards are present for added safety.
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Avoid high-risk withdrawal days
Do not withdraw contributions on high-risk days, such as month-ends or the day before major holidays.
In conclusion
Stokvel safety and precautions ensures the festive season remains safe and joyous for everyone involved. We also encourage stokvel members to remember they don’t need to spend all their money during this period. Setting aside some savings for the upcoming new year is a smart financial decision.
