AS South Africans embrace the dawn of a new year, excitedly planning fresh beginnings, the ruthless world of fraud is lurking ominously in the shadows.
With renewed ambitions, students seeking higher education, parents hunting for suitable schools, and individuals grappling with unemployment—the desperate and vulnerable are prime targets for scammers wielding increasingly sophisticated schemes.
The financial strain accompanied by January’s impending costs makes consumers fertile ground for deception.
“As you prepare for the exciting new year, remember that your goals, ambitions, and resolutions present an opportunity for scammers. They capitalise on the uncertainty and pressure that often accompany new beginnings and prey on your hopes and concerns,” Standard Bank’s head of fraud risk management, Athaly Khan, warned.
Khan highlighted that the onset of the year would see a surge in individuals seeking loans, investments, job opportunities, and educational support. “Be cautious of unsolicited investment opportunities, especially those offering high returns with little risk. Scammers often ask you to act swiftly so that you do not 'miss out’ on the opportunity of a lifetime,” he said.
As victims grapple with renewed career ambitions, the threat of job scams looms large. Scammers entice with glittering prospects of lucrative employment while disguising themselves behind fake job offers. “Scammers also use fake job offers to deceive individuals into sharing personal information, compromising your personal security,” Khan said.
With the academic year commencing, the backdrop is rife for student loan scams. Fraudsters masquerade as financial service providers promising reduced-rate loans, often demanding upfront fees or sensitive personal information.
“Scammers have been known to string their victims on for a significant period before a line is drawn in the sand. By then, the victims have more than likely lost quite a bit of money,” head of product development at the Southern African Fraud Prevention Service (SAFPS) Nazia Karrim warned.
Furthermore, our resolutions towards health and fitness can be exploited through the promotion of miracle weight-loss products that promise stunning results. “These products are advertised with fake celebrity endorsements and fabricated testimonials, often requiring upfront payments with no results delivered,” Khan said.
As South Africans battle the financial burden of education-related expenses, they often find themselves targeted.
"While there is plenty of excitement associated with the new year, it can be a costly period for most South Africans," communications lead at the SAFPS, Elmi Kemp, said. “This is a period where scammers and fraudsters are very active.”
Loan scams emerge as a significant concern. Scammers present enticing offers under false pretences, demanding upfront administrative fees only to disappear once their victims cough up cash.
“Scammers will deceive you into paying them money in the hopes of securing a bigger loan,” Kemp warned. “They also use the process to gain access to your personal data, which they will use to commit application fraud.”
Kemp outlined critical red flags to watch for: guaranteed loan approvals regardless of credit history, demands for upfront payments, and urgency to respond before a deal expires—often disguised as exclusive offers. “Vigilance is key. Be alert to what is being presented to you. Remember, if it looks too good to be true, it probably is,” she said.
Bursary and scholarship scams hide in the shadows of educational aspirations. Many families face the daunting costs of securing education, leading to overwhelming temptation.
“The temptation of these options may cause potential victims to ignore the fact that they are being presented with a scam,” Karrim warned. These scammers often request advance payments under the guise of application processing fees.
As parents scramble to purchase textbooks and laptops, they too risk falling prey to social engineering schemes on online marketplaces. Karrim cautioned that scammers would exploit trust by creating fake profiles on social media, gaining information about victims, and robbing them of their hard-earned cash.
Those navigating the online shopping landscape must remain on high alert. “Deals that are too good to be true (prices are surprisingly low and free offers) pop up on your social media as ads. They are for a limited time only or while stocks last.” Karrim cautioned consumers to be vigilant.
In light of this trend, the SAFPS has launched the Yima website, a response to the increasing need for consumer awareness and empowerment. “Knowledge is power, and consumers can find helpful tips and articles to expand their knowledge on how to identify a scam,” Karrim said, urging South Africans to utilise these resources.
Furthermore, Kemp stressed the importance of protective registration, a free service designed to safeguard individuals against potential fraud.
Here is a list of the latest scams that South African consumers should be aware of:
- Tiger Agriculture Scam:
- Phishing, Vishing, and Smishing:
- Loan Scams:
- Online Shopping Scams:
- Authorised Push Payment (APP) Fraud:
- SIM Swapping:
- Fake Online Profiles:
As this New Year unfolds, consumers must arm themselves with awareness and vigilance. Scammers are deftly exploiting moments of vulnerability—let knowledge be your shield against their deceptive tactics. Consumers are urged to remain vigilant, verify the authenticity of offers, and report any suspicious activities to relevant authorities or their banks.