The South African Banking Risk Information Centre (SABRIC) is currently on an awareness drive to warn bank customers of numerous bank-related crime scams as the festive season approaches.
Speaking on behalf of the centre, Chief Executive Officer Kalyani Pillay urged customers to be vigilant during the festive season; “especially around scams that promise you huge returns with minimal effort”.
The banking industry has identified some scam trends that consumers should look out for the following:
· Deposit and refund scam which involves criminals ordering goods or services from a business or individual and then paying money into the victim’s bank account.
The payment is commonly done through a fraudulent cheque.
Sometimes, proof of payment is fabricated to create the impression that the deposit was made in cash.
It is then followed by sending the ‘proof of payment’ to the business or individual and then 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.
This results in no funds being transferred into the victim’s account and the victim is subsequently out of both the monies and the goods.
· Fraudulent requests to change bank account details which remains prevalent.
Customers are tricked by fraudster by informing them that certain suppliers have changed their banking details.
· Advance fee scam where fraudsters’ worm funds from the victim with the promise of higher value in return through an email or text message stating that they have won a lottery or a prize and need to contact someone to collect your prize.
The con artist will convince a victim that in order to receive the prize, an initial administrative cost must be paid into a nominated account.
SABRIC advised customers 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 email 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.
“Fraudsters often use the names of reputable companies to try to con people into believing that their scams are legitimate”, explained Pillay.
“Do not accept unsolicited communications at face value.”
