With the festive season approaching, fraudsters and scammers often use this time to crawl out of the woodwork, threatening to turn festive cheer into frustration.
It is estimated that during Black Friday sales, South Africans spent R5b in 2021.
“While these sales have become a common way to mark the beginning of the commercial side of the festive season, it is important to remember that fraudsters are very active at this time of the year,” says Manie van Schalkwyk, CEO of the Southern African Fraud Prevention Service (SAFPS).
“While there are plenty of legitimate specials on offer, there are also a lot of fraudsters who want to take advantage of our desire to find the perfect deal.”
He added particular attention needs to be given to online payments, as these can become low-hanging fruits for fraudsters. PayFast reported online transactions over the Black Friday period last year increased by 34% and the average basket price was R1 208 per transaction.
This is likely to increase this year as many consumers would want to avoid the in-store rush.
“A growing trend is a practice whereby a company that offers products and services at a discounted rate demands partial or full payment in advance and not delivering the actual product,” said Van Schalkwyk.
Red flags
When considering making online purchases, Van Schalkwyk cautions consumers to look out for these red flags.
• Check the company’s website for a legitimate telephone number and address.
If there is no way to contact this company outside of its website, it may be an indication that the business is not legitimate.
Emails and domain names are easy to obtain, therefore, only having an email address is not as trustworthy as traditional contact information.
It is always a good idea to call the number provided on their website to speak to an agent.
• Browse the internet for discrepancies and indicators of professionalism.
The internet has provided consumers with a voice to highlight their frustrations with a company and indicate that there may be problems when dealing with them.
• Always look at a request for a deposit with some degree of suspicion.
It is common practice with some companies where you should only pay a deposit once you are confident that you are dealing with a legitimate company.
• It is always advisable to deal with companies registered as participants with the Consumer Goods and Services Ombud (CGSO). This is a guarantee that they are legitimate and will address any complaints themselves.
Should fraudulent business practices take place, consumers can escalate complaints through the CGSO if the business is not offering a quick resolution.
All qualifying suppliers of goods and services throughout the country are required to register with the CGSO and comply with the Consumer Protection Act (CPA).
Accepting payment without delivering the goods or the services is a contravention of this act.
Consumers can check on the CGSO website for registered participants or lodge complaints on www.cgso.org.za
Sign up for Protective Registration
In terms of financial fraud where individuals’ personal information, is used to open accounts or apply for credit it is recommended to register for SAFPS’ Protective Registration.
Protective Registration is a free service protecting individuals against future financial fraud.
Consumers apply for this service and the SAFPS alerts its members to take additional care when dealing with that individual’s details.
Registration of this nature provides an added layer of protection and peace of mind regardless of whether the identity of the applicant has been compromised.
To register visit www.safps.org.za, click on the fraud prevention tab and protect yourself against identity theft.
For best results, use your smartphone to visit the site.
Also Read: Identity theft through social media on the rise
Also Read: Protect your personal information against thieves
