Banking customers have been warned to be alert during the festive season.
The South African Banking Risk Information Centre (SABRIC) recently embarked on an awareness drive to warn customers of numerous bank-related scams.
“We want to warn customers to be vigilant during the festive season, especially around scams that promise you huge returns with minimal effort” said SABRIC chief executive officer, Ms Kalyani Pillay.
Among the scams currently doing the rounds are the deposit and refund scam, fraudulent requests to change bank account details scam and advance fee scam.
The deposit and refund scam involves criminals ordering goods or services from a business or individual and then paying money into the victim’s bank account, mostly by depositing a fraudulent cheque.
Sometimes, proof of payment is fabricated to create the impression that the deposit was made in cash.
Following this they send the ‘proof of payment’ to the business or individual and the goods are released to the criminal.
Alternatively they cancel the order and request an urgent refund of the funds made.
The bank will then process the cheque and discover that the cheque is fraudulent and reverse the credit on the victim’s bank account, or discover that no deposit was made at all.
As a result, no funds are transferred into the victim’s account and the victim is subsequently out of both the monies and the goods.
Bank customers are encouraged to ensure the following so that they do not fall victim to this scam:
- No ‘refund’ should be made without first verifying with the bank that the deposit that has been made into an account is, indeed legitimate.
- Wait for all deposits whether cheque, cash or electronic transfer, to be cleared first before releasing the goods or services to a depositor.
- Always check bank statements or contact the bank to establish if the funds have been cleared and are available in your account before releasing the goods.
- Protect your personal information as well as that of your company. Criminals gain access to you and your organisation details through your personal information.
The change of banking account details scam also remains prevalent as bank customers are still duped by scammers telling them that certain suppliers have changed their banking details.
Another scam that bank customers must be wary of is advance fee scams.
In this scam, fraudsters extort funds from the victim with the promise of higher value in return.
As a victim of this scam you will receive an e-mail or text message stating that you have won a lottery or a prize and need to contact someone to collect your prize.
The con artist will convince you that in order for you to receive your prize, you must pay an initial administrative cost into a nominated account.
“Fraudsters often use the names of reputable companies to try to con people into believing that their scams are legitimate,” Ms Pillay said.
Bank customers are asked to apply the following tips to ensure that they do not become victims:
- Follow the saying ‘if something seems too good to be true, then it probably is’.
- Always be suspicious of e-mail or text messages stating that you have won a prize if you have not entered a competition, and never pay an amount in advance to secure your prize.
- Never pay any fees upfront, unless you are sure that the person or company that you are dealing with is a reputable supplier.
