Richard Frost | Product Head | Cybersecurity | Armata | mail me |
Con artists and scammers are becoming more skilled at manipulating bank details and private information from consumers. It is important to understand the risks and recognise the warning signs. Fraud and scam statistics in South Africa are alarming.
The Southern African Fraud Prevention Service (SAFPS) reported a 32% rise in fraud cases in 2024. In 2023, 47.47% of formal cases opened with the Ombudsman for Banking Services were labelled as fraudulent.
Cybercriminals have become increasingly sophisticated in their methods and strategies over recent years. Falling victim to fraud is unfortunately easy.
Scams are designed to tap into emotions
Scams become even more common during mega sales like Black Friday and Cyber Monday. As timers tick down and stocks dwindle, it’s easy to make rushed decisions. These are decisions you might not make under normal circumstances.
The psychology of “anticipatory regret” plays a significant role in these scams. People fear missing out on a spectacular saving or last-minute deal. Scammers exploit emotions such as regret, fear, worry, and stress to deceive victims. They use messages like, “You’re about to miss the deal!” or “Your account has been compromised!”
Scammers are skilled at manipulating emotions when people are tired, excited, or distracted. This makes victims less likely to scrutinise online actions or unusual behaviours. Many believe they wouldn’t fall for a fake call from their bank until it happens to them.
Targeting vulnerable individuals
One common scam targets less technologically advanced individuals, such as the elderly. Scammers offer to help them at ATMs, exploiting their trust and lack of familiarity with the process. Elderly individuals may not realize that the person assisting them is not a bank employee.
It is crucial to remember that no one, especially a bank employee, should assist with your PIN or card at an ATM. Scammers can easily steal your details this way.
Faked calls from banks
Another rising threat is fraudulent calls from individuals pretending to represent banks. These scammers often collaborate with bank employees to gain access to personal information.
For instance, FNB recently faced issues involving an employee who accessed customer accounts without authorisation. Similarly, Capitec had to address staff-related debit order manipulations. When fraudsters have insider information, their scams can appear legitimate.
If someone claiming to be from your bank calls you, avoid sharing personal information immediately. Instead, tell them you’ll call back using the bank’s official call centre number. Legitimate employees typically do not have dedicated lines. This precaution helps verify whether the issue is genuine.
EFT fraud and physical transactions
When buying or selling goods, scammers may exploit EFT fraud tactics. They might make an EFT in your presence but reverse the payment once they leave. Proof of payment means nothing if the funds don’t stay in your account.
To avoid this, insist on cash for physical transactions. Cash provides a secure method to ensure the exchange is legitimate.
In conclusion
Always be cautious of deals that seem too good to be true. Scammers often fake discounts on flights, holiday accommodation, and other items. Verify the legitimacy of websites and companies before making purchases.
Advanced AI and design tools allow scammers to easily create fake websites that steal your information during checkout. Take your time to verify the site’s URL, security features, and legitimacy.
Be cautious about anyone contacting you with offers or concerns. Prioritise financial safety over seemingly attractive deals. Ultimately, you save more money by avoiding fraudulent transactions altogether.
Related FAQs: 90% off is 100% fake shopping scams
Q: What are the signs that a website is promoting 90% off is 100% fake deals?
A: Common signs include poorly designed websites, unrealistic low prices, and a lack of a clear privacy policy. Additionally, if the site uses phrases like “limited time” or “going out of business,” it may be a red flag.
Q: How do scammers create fake ads that seem legitimate?
A: Scammers often replicate popular online stores’ layouts and product images to create a convincing facade. They may also use social media ads on platforms like TikTok to promote these fake sites, making them appear more credible.
Q: What should I do if I encounter a 90% off is 100% fake scam site while shopping online?
A: If you suspect a site is a scam website, do not enter any personal information. Report the site to your card company and consider sharing your user experiences on social media to raise awareness.
Q: How can I manage my data when shopping online to avoid scams?
A: Always read the privacy policy of any online store before making a purchase. Ensure that the website is secure (look for HTTPS) and avoid sharing sensitive information unless necessary.
Q: What are the potential risks of shopping on a fraudulent site?
A: Shopping on a fraudulent site can lead to financial loss, identity theft, and exposure to ransomware. Scammers may use your information for phishing or to sell it to other malicious entities.
Q: Are clearance sales often associated with scam works?
A: Yes, clearance sales are frequently used as bait by scammers. They may falsely claim to be going out of business or having a store closing sale to lure unsuspecting customers.
Q: How can I confirm if vendors are legitimate when shopping online?
A: Check for customer reviews, look for third-party certifications, and verify the contact information provided on the site. If something seems off, it’s best to avoid the purchase.
Q: What should I do if I clicked on a scam ad on TikTok?
A: If you clicked on a scam ad, it’s important to take action immediately. Run a malware scan on your device, change your passwords, and monitor your bank statements for any unauthorised transactions.
Q: Is it safe to rely on social media ads for online shopping?
A: While some social media ads can lead to legitimate online stores, many fraudulent websites also use these platforms to promote fake deals. Always verify the authenticity of the store before making a purchase.
