How locals can avoid business scams
“It has become imperative for businesses to constantly keep up to date with the latest fraud scams and trends to avoid being victims."
With a rapidly evolving fraud landscape in which fraudsters are leveraging the latest technologies and constantly refining their modus operandi, businesses should be on guard.
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Business operators have to avoid falling victim to the latest scams which could potentially result in their business losing millions and suffering reputation damage.
Roshan Jelal, Head of Fraud at FNB Commercial, said given the advances in technology and the sophisticated nature in which fraudsters operate, fraud detection and prevention have become a standard business practice.
“It has become imperative for businesses to constantly keep up to date with the latest fraud scams and trends to avoid being victims.
Moreover, most importantly, businesses should invest time, effort, and resources in equipping its employees to detect fraud efficiently and effectively,” said Jelal.
Jelal unpacks ten common scams that businesses should look out for as follows:
Lost and stolen phone
You will receive an SMS prompting you to click a link to find your phone or activate your “Find My Phone” app, even though you have your phone with you.
Clicking the link, allows fraudsters to gain access to your phone compromising personal and business data.
Business Email Compromise
Fraudsters use malware (and at times combined with social engineering tactics) to gain unauthorised access to a business email account and change invoice and supplier banking details.
Businesses often fall victim to this scam as fraudsters are constantly refining the modus operandi.
However, the objective is always to get businesses to pay money into a fraudulent bank account.
It is vital that you validate any request to change banking details with a known contact and use contact details you sourced yourself. Use the Account Owner Verification tab on Online Banking
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Deposit slips/ EFT advice fraud
The objective of this scam is to fraudulently get access to goods being sold without paying for them.
For example, fraudsters send fraudulent deposit slips or proof of payment claiming that they have made payment of goods and/or services.
Never release goods or services before checking your bank account.
Never release goods based on a copy of a deposit slip or copy of EFT advice provided, rather contact your bank to validate the deposit.
Advance-fee scam
This is a form of fraud where someone who claims to be a supplier promises you goods or services but requires upfront payment.
It is advisable to avoid paying any amount upfront unless you are dealing with a reputable supplier or a supplier that has worked with you before.
ATM card swapping
This happens when you accept assistance from strangers at an ATM and then fall victim to the stranger swapping your card with another.
If you put your PIN in front of them, they will then have access to your bank account. Always remain vigilant.
Tender scams
Scammers often impersonate government departments to fraudulently get access to company data, banking details, goods and services by misleading businesses into believing they have secured a tender/contract.
Be wary of unsolicited requests to tender.
If you are on the government supplier database and received a request to quote or to tender it is advisable to contact the department (using contact details, you have sourced yourself) to validate the request.
Furthermore, ensure you are aware of how government procures goods and services. Visit the government’s tender website for information on the tendering process.
Remote access
Happens when fraudsters gain access to your device or profile by enabling remote access tools to be installed on your device. It is advisable not to use public Wi-Fi to access your banking app.
Also, always cancel or delete access tools installed on your device that you are unaware of.
Card and PIN Compromise
Fraudsters reset your login details and you are conned into approving bank detail changes by disclosing your OTP.
Never approve anything if you didn’t make any changes to your profile or make a transaction. This is how fraudsters gain access to your banking profile.
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Phishing, vishing and smishing
These are common identity fraud scams often carried out by email, voice or text, or a combination of all the communication channels.
Fraudsters use various methods to get sensitive personal or company data to be used for criminal activities.
Sim Swap Scams
Fraudsters will call you pretending to be from your cellular network provider to gain information about your cell phone number, PIN or PUK details.
They then pretend to be you and port your current number to a new service provider, effectively shutting off your phone service and taking control of your number.
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