At a time when budgets are stretched to breaking point, it is extremely important that people avoid falling victim to fraud. Therefore, consumers are urged to be on high alert for scammers trying to profit from the fear and confusion surrounding the current crisis.
“If someone contacts you unexpectedly – whether it’s over the phone, by email, SMS, WhatsApp, on a website, in person or on social media – and claims to be a company representative, sales officer, or government official, always be cautious. Scammers go to great lengths to appear trustworthy. Even if a communication seems to come from a legitimate source, it’s best to verify it by contacting the organisation directly, using the details listed on their official website,” warns James Williams, Head of Marketing at short-term lender Wonga.
Furthermore, he advises that people should never click on any links in unsolicited communications and never provide any personal information such as bank account details, login credentials, identity documentation or contact details to people or websites that have not been verified.
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To ensure that people are alert to the dangers posed by scammers, Wonga has detailed six major scams that have emerged in South Africa since the COVID-19 outbreak.
COVID-19 contact testing scam
This scam typically involves a potential victim receiving either an SMS or email stating that they have been in contact with someone who has tested positive for COVID-19. They are then asked to make an advanced EFT payment of approximately R300 to R400 for a health professional to visit them at home to conduct a COVID-19 test. After the money has been transferred, all contact is broken off and the individual is never tested. It is important to note that contact testing is conducted by the Department of Health and is free of charge.
Phishing or smishing attacks
Phishing or smishing attacks use fake emails or SMSes to trick people into handing over their personal information. Since the outbreak of COVID-19, thousands of these scams have emerged.
In these communications, the scammer poses as the representative of a reputable organisation, like a government department or the World Health Organisation. Emails usually contain a link through which victims believe they can access medical information, health products (like fake vaccines, masks, or sanitisers), or financial assistance and government grants. However, the link actually leads to a fake website through which hackers can trick victims into handing over their personal information such as bank account details and security credentials.
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For these reasons, people should avoid downloading attachments or clicking on links in unsolicited emails or text messages – even if they appear to come from a legitimate source. Instead, they should consult the relevant organisation’s official website for further information or contact them directly, using the details listed on that website.
Fast-tracked funding for SMMEs scam
Small, medium and micro enterprises (SMMEs) have been warned against scammers who claim to be able to fast-track their applications for COVID-19 relief funding in exchange for payment. These scammers do not represent the Department of Small Business Development (DSBD), and cannot provide any real assistance to applicants. The DSBD stresses that it does not charge any fees for its services, therefore scam victims will find themselves out of pocket with nothing in return.
Procurement scams
State-owned enterprises and government departments such as Transnet and the Department of Defence have warned the public about fraudulent requests for quotations. These fraudulent requests are sent to unsuspecting suppliers who are asked to provide quotes for sanitation products or personal protective equipment like hand sanitiser, masks and surgical gloves. Once the supplier has sent their quote, it is promptly accepted and delivery of the goods is arranged. However, once the goods have been handed over, no payment is received and, upon following-up, the supplier is told that no order was ever made by the organisation in question.
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NPO scam
The Department of Social Development has warned non-profit organisations (NPO) of a scam which claims to accredit and convert NPO certificates to non-governmental organisation (NGO) certificates to help them qualify for international funding worth millions of rands. Not only do the scammers charge the victims for the service but, through the scam, they also trick them into handing over confidential information such as member’s ID copies, proof of residence, tax-exemption letter and bank account details. The scammers claim this information is required to convert the certificates, but actually use it to access the organisation’s bank accounts and steal their money.
Money cleaning scam
In this scam, fraudsters posing as representatives from the South African Reserve Bank go from door to door claiming to be recalling cash that has been contaminated with COVID-19. Cash is exchanged for a fake receipt that victims believe can be swapped for virus-free cash at any bank. However, these receipts are completely worthless and the victim never gets their money back.
