The banks have issued a warning to individuals and businesses to beware of deposit-and-refund scam operators who have devised new ways to fleece you.
The deposit-and-refund scam has been around for many years, but according to the South African Banking Risk Information Centre (Sabric), scam operators have changed their tactics.
Previously, they would pose as a client, and would make a payment into your bank account using a fraudulent or fake cheque. The fraudster would then call you and complain that the payment made was higher than the amount owing to you or higher than the price of the item being sold. They would then demand an immediate refund. You "refund" the fraudster. Only when the fake cheque is returned by the bank - unpaid - do you realise that you've been defrauded.
New ploy
The banking industry has discovered that fraudsters are now using invoices issued to the victim, or they obtain details of the exact amounts owed by the victim to their creditors. Fraudsters use this information to dupe their victims into paying the amount due to a creditor into a fraudulent account. There is no request for a refund; payment is merely directed into their account.
This is how it works:
- The victim, usually a business, is contacted by fraudsters pretending to be employed by one if its creditors. The fraudsters have all the relevant contact details and know exactly what amounts are due by the victim to the creditors (as well as names of people on both sides).
- The fraudsters inform the victim verbally and in writing, using the creditor's letterhead (which they fax), that their banking details have changed and the amount must be credited to a newly appointed account and institution. Obviously the account has been fraudulently opened.
- The victim then deposits the money into the new account. Only once they are contacted by their genuine creditors for outstanding accounts, do they realise that they have been caught in a scam.
Susan Potgieter, the head of commercial crime at Sabric, cautions consumers against accepting invoices bearing stickers with new payment details, often directing payment to fraudulent accounts.
"Don't accept these at face value. Treat such notification with suspicion and only use the information once you have verified it using known contacts."