Couple take on Vodacom, Absa for SIM swap scam

A Gauteng-based business couple are suing Absa and Vodacom for about R1.18m, claiming they were swindled out of their company’s working capital through a SIM swap scam.

When Petrus and Hendrina Malan picked up on the fraud they say they instructed Absa to place a hold on the funds, but this instruction was allegedly ignored and two days later the money was transferred into a fraudster’s account and withdrawn in cash at Sibaya Casino, Durban.

The Malans have been in business since 2003, manufacturing and retailing roller doors and associated products.

They run their business and its accounts through their PJM Family Trust.

Their high court claim against the bank and cellphone company is for R249,000, being the amount taken from the account, about R388,000 for loss of profit and R543,000 they say they spent to recapitalise the business.

In their claim on behalf of the trust the Malans say that to initially guard against fraud they would receive random verification numbers in the form of text messages on their Vodacom cellphone whenever the account was accessed to make payments or add beneficiaries.

On January 9 2016 the cellphone appeared to stop working and was disconnected from the Vodacom network.

The Malans reported this to Vodacom, but the service was only restored two days later after Petrus Malan went in person to Vodacom’s Westgate store. They then discovered that a “suspicious” random verification number had been sent to the phone and that R249,000 had been transferred to another Absa bank account in the name of a “Mr Ismail”.

Petrus Malan says he immediately alerted the bank to the fraud.

Officials advised him that at that stage only R5,000 had actually been transferred and the balance was pending.

TRANSACTION

He instructed that this pending transaction be stopped. Yet three days later he was advised that the full amount had been paid into Ismail’s account.

From documents the Malans obtained from the bank using promotion of access to information legislation, they learned that the account holder was one Luqman Ismail.

The account had been opened a day before the fraud took place on January 8 2016

and had been deemed “high risk” by the bank. They also discovered that the money had been withdrawn at the casino.

They claim Vodacom admitted it had facilitated a SIM swap on the account.

R1.18m the amount claimed against the bank and the cellphone company includes R249,000 taken from the account, about R388,000 for loss of profit and R543,000 spent to recapitalise the business

SIM SWAP

“Vodacom used a completely unrelated ID copy to process the SIM swap. They failed to verify that the person was a trustee and provided a SIM card to an unknown individual not authorised by the trust,” the Malans say, accusing both companies of negligence.

Their attorney, Aneesah Patel, said the trust had tried to reach an “amicable solution”, but Absa and Vodacom both denied liability and blamed the trust.

Absa did not respond to a request for comment.

However, in its pleadings it suggests the trust must have disclosed personal information, including the online banking password, to “unauthorised third parties”.

Vodacom confirmed to Business Day that it denied liability and was defending the matter.

“Vodacom treats any fraudulent activity on its network in a very serious light and has introduced a number of measures to help prevent fraud,” it said.