10 scams businesses should look out for

Fraud is rapidly evolving with scammers leveraging the latest technologies and constantly refining their modus operandi.

Businesses need to be on guard to avoid falling victim to the latest scams which could potentially result in them losing millions and suffering reputational damage.

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Head of fraud at FNB Commercial, Roshan Jelal, said given the advances in technology and the sophisticated nature in which fraudsters operate, fraud detection and prevention has 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 becoming victims,’ said Jelal.

He recommended that businesses invest time, effort and resources in equipping their employees to detect fraud efficiently and effectively.

10 common scams to watch out for:

1. Lost and stolen phone
The victim receives an SMS prompting them to click a link to find their phone, or activate the ‘Find My Phone’ app, even though their phone is with them. By clicking the link, the victim allows fraudsters to gain access to their phone, compromising personal and business data.

2. Business email compromise
Fraudsters use malware, 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 constantly refine their modus operandi. However, the objective is always to get businesses to pay money into a fraudulent bank account.
Validate any request to change banking details with a known contact, and use the contact details you sourced yourself. Use the account owner verification tab on online banking.

3. Deposit slips/ EFT advice fraud
The objective of this scam is to get access to goods being sold without paying for them. For example, fraudsters send deposit slips or proof of payment claiming they have made payment for goods and/or services. Never release goods or services before checking your bank account or based on a copy of a deposit slip or EFT. Contact your bank to validate the deposit.

4. 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 one you have worked with before.

5. ATM card swapping
This happens when you accept assistance from strangers at an ATM and the stranger swaps your card with another. If you put in your PIN in front of them, they will have access to your bank account. Always remain vigilant.

6. Tender scam
Scammers often impersonate government departments and 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 receive 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 process.

7. Remote access
This 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 WiFi to access your banking app. Always cancel or delete access tools installed on your device that you are unaware of.

8. Card and PIN compromise
Fraudsters reset your login details and you are conned into approving bank detail changes by disclosing your OTP or smart InContact for FNB customers. Never approve any smart inContact if you didn’t make any changes on your profile or a transaction – this is how fraudsters gain access to your banking profile.

9. Phishing, vishing, and smishing
These are common identity fraud scams carried out by email, voice, text, or a combination of all the communication channels. Fraudsters use various methods to get sensitive personal or company data for criminal activities.

10. Sim swap scam
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 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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