Scams can cripple your life
ALWAYS BE ALERT: THERE ARE RED FLAGS AND CHECKS TO DO YOURSELF BEFORE ACTING
Scammers often purport to be from known companies.
Consumers are warned to watch out for old and new scams that could cripple their lives as scammers try to take their hard-earned cash and private information. Fraud and scamming are increasing at an alarming rate and consumers must be vigilant all the time.
According to the Southern African Prevention Service, fraud impersonation increased by 337% in 2021 and crypto and Ponzi schemes cost South Africans more than R54 billion.
While technological measures designed to protect you against scammers may be sophisticated, so are fraudsters’ methods to scam you, said the Momentum Metropolitan cyber security team.
“The festive season was the most wonderful and expensive time of the year. Scammers were busy taking advantage of seasonal spending with fake online stores, phantom hotel bookings and bogus deliveries.
“We remind all consumers to keep being cautious. Perpetrators are skilled at their craft, employing countless tactics, such as phishing e-mails or texts, to trick people into disclosing financial and personal information.”
The Momentum Metropolitan cyber security team found that scammers are sneaky and opportunistic criminals who take advantage of consumers during busy seasons, such as the festive season, Valentine’s Day, back-toschool, early in the year or when consumers are job hunting.
“Being sceptical can help to keep you safe. Question everything and always double check, especially when a situation feels too good to be true.”
The team has these tips to help you stay safe:
▶ Educate yourself: Learn to recognise common fraud and scam tactics online. The media, watch-groups such as the Financial Sector Conduct Authority (FSCA) and companies such as Momentum Metropolitan are continually reminding consumers to be alert. Authenticate information:
▶ Always verify the legitimacy of people or companies requesting access to your personal information or your money. Rather contact the company directly to check if you are dealing with it.
▶ Secure your devices: Use strong, unique passwords (or even better, pass phrases) and keep your devices and software up to date to reduce vulnerability.
▶ Be sceptical: Question all unsolicited offers, requests, or deals that seem too good to be true and do your research.
▶ Research businesses: Before buying online or investing, research the credibility of the company. Check online or on trusted review platforms.
▶ Monitor bank statements: Regularly review your financial statements and credit reports for any unusual or unauthorised transactions.
▶ Stay safe on social media: Be cautious about accepting friend requests from strangers, avoid quizzes that may be used to hack your account, or calls where the caller asks personal questions and always report dubious activity. Most channels, like Facebook have a reporting option.
▶ Job hunt securely: Research potential employers and be mindful of unrealistic job postings. Never meet prospective employers at private residences and rather opt for public places like their offices or a coffee shop. If they say they will pay for your travel costs, make sure they pay upfront.
What does a scam look like?
To protect yourself from scams, you need to be aware of what a scam can look like. There are red flags. These include:
▶An offer of an incredible way to make or save money at much higher interest rates than banks, with pressure to act quickly.
▶ Someone you have never met requests your help or money, often by telling you heartbreaking stories with no proof of need.
▶A message contains links or attachments which you must open where you are asked to enter personal details.
▶ This allows the scammers to send you to a fake website or steal your information. Always verify the authenticity of the website with the company yourself.
▶ When you buy or invest you are asked to pay in unusual ways, such as via Bitcoin or preloaded debit card or into a private bank account.
Reputable companies will never ask for this or allow deposits into personal bank accounts.
▶ You are urged to open a new bank account to facilitate payment to you for something or to pay them for something you bought.
“If you understand the consequences letting scammers into your life can have on you and your finances and how seductive and sophisticated they can be, you are better equipped to boost your own cyber security measures,” the team said.
The FSCA has warned consumers of these scams since the beginning of the year:
▶ The FSCA warned consumers to be cautious when conducting financial services business with Tumi Links Investments as Tumi Links has offered to trade in forex products, among others, on behalf of members of the public.
Tumi Links is not licensed in terms of any financial sector law to provide financial products or financial services and was unavailable for comment.
▶ The FSCA also warned consumers against doing financial services related business with individuals soliciting investments while impersonating financial services providers (FSPs), Rich Ideas Group, IC Markets and Scope Markets SA, as it has come to the attention of the FSCA that an entity named “Wealthfront”, Franz Wastl, David Daniel Venter and Roelof Johannes Riekert, as well as individuals named “George” and “Helena” target victims using WhatsApp and Facebook.
They promise unrealistic returns. The FSPs have confirmed it they are not associated with them and did not give permission for their licence certificates, brand names and logos to be used.
Wealthfront, Wastl, Venter and Riekert, George and Helena are not licensed under any financial sector law to provide financial products or services in SA.
They did not respond to communication from the FSCA.
▶ The FSCA also warned consumers to be cautious when taking up guarantee insurance policies issued by Namco Capital, trading as Namco Guarantees as the FSCA received a complaint that Namco may be issuing guarantee insurance policies to consumers which may not be underwritten by an authorised short-term insurer.
Without commenting on the business of Namco, the FSCA said that for a company to issue insurance policies in SA it must be authorised by the FSCA and the Prudential Authority.
Conducting financial services business or insurance business without a licence is a criminal offence. Namco is not so authorised and does not hold a licence from the FSCA to conduct financial services business. The FSCA is currently investigating Namco.
▶ The FSCA also warned of a scam run on TikTok and Facebook by individuals purporting to be from International Capital Markets as it received information from a consumer defrauded on TikTok.
They promised to invest her money in return for a greater payout and subsequently requested her to deposit more money to release her investment return.
Another individual on Facebook offered to assist her to recover her investment returns from the individuals who defrauded her and this too turned out to be a scam as she was requested to deposit more funds.
IC Markets is a registered financial services provider and confirmed that the company is not associated with the individuals on TikTok or Facebook using its name.
▶ The FSCA warned consumers this week to be cautious of a Telegram group impersonating Seed Investment Consultants. The group advertises a Ponzi Scheme to hook potential clients.
The FSCA received confirmation from Seed Investment Consultants, a legitimate financial services provider, that it did not give the Telegram group any right to use its names.
Consumers can first check with the FSCA on its toll-free number (0800 110 443) or on https://www. fsca.co.za/Fais/Search_FSP.htm whether an institution or person is authorised to render financial services.