My story
Iwas contacted over the phone by an online trader who specialised in binary options, cryptocurrency and forex trading. He said his company was on the cutting edge and used the latest technology and could offer guaranteed returns.
I invested a few thousand and used their online platform, which seemed to work very well. I could see my trades were resulting in good profits. I invested more at their insistence and they promised I would earn even more.
When I wanted to withdraw my money I was told I would need to pay taxes on my profits before I could access it. I was never warned about this but they insisted I needed to pay taxes before I could get my money back.
After I asked for my money, my trades started to fail and my accumulated profits were starting to decrease. They pressured me to invest more so that I could reverse the situation by increasing my ‘trades volume’. They said I would lose everything unless I invested more as an emergency.
I feel very embarrassed by this scam — they were very convincing and professional.
They stated I would be ‘kicked off the market’ because my trades were failing and I was reduced to 3% of my initial investment, but by that point I knew it was all fake.
Avoid this type of scam
Hang up on the caller and taken some time to think about it. Do research and seek trusted or independent financial or legal advice.
Signs this was a scam
The victim was:
phoned out of the blue by a stranger offering unsolicited advice on investments told he had to pay additional fees (taxes in this case) to access his money, though he was not informed of this earlier offered ‘guaranteed returns’ encouraged to invest more by being promised higher returns, and then pressured to do so or risk of losing all of his money.
Common scams in South African banking
1. Phishing: Fraudsters send emails with links, icons or attachments claiming to be from the bank to trick you into sharing your personal banking information like login credentials, OTPs (one-time PIN) or credit card details. They will send an email with a link to a fake website that looks like your bank’s website. The fake website will ask you to enter your banking login details. Once you’ve entered them, they will use your details to access your account and take your money.
2. Vishing: Fraudsters call you pretending to be from the bank or a reputable company. They may ask you for your digital banking login credentials, passwords, PINs or OTPs. They may also say that the security of your account is under threat and tell you to make payments to secure your account. They make the situation seem urgent and that they need your banking details urgently to save your money from being stolen. Meanwhile, they will use your details to access your account and steal your money. Your bank will never ask for your bank PIN and passwords.
3. Smishing: Smishing attacks involve sending fraudulent SMS messages to victims. Scammers will often use these messages to trick victims into clicking on malicious links or downloading malware. Malware is software that will send whatever you type on your device to the scammers. They will be able to see your login details when you login to your apps. This will allow them to steal your private information.
4. ATM card swapping: Fraudsters often work in groups to swap cards. One person may distract you while another makes the card swap. The will also “shoulder surf” your PIN, which means that they stand close enough behind or around you to see you type in your PIN. You then leave the ATM with a card that is not yours.
5. Change of banking details: Fraudsters may trick you to make payments into bank accounts that do not belong to the intended recipient. Before making any payment, please call the intended recipient to confirm banking details and use AVS (account verification services).
6. Investment scams: Fake investment scams involve scammers offering victims high-return investments that are fraudulent. These scams often target people who are looking for ways to quickly make money. They may say there is a new investment market like Bitcoin, for example, and claim that your money can be multiplied in a matter of days. Once you send them your money, they disappear. These scammers normally use fake social media accounts with images of other people in their profile. Always consult your bank or a financial advisor before deciding to invest in something you’re not sure of.
7. Loan scams: Loan scams involve scammers offering loans with low interest rates and easy terms. The scammers will need a payment from the victim to secure the loan. However, once the victim has agreed to the loan, the scammer will disappear with the money.
Tips for safe banking:
• Never enter your login credentials after clicking on a link that redirects you to a Standard Bank login screen.
• Never share your OTP (one-time PIN) with anyone to authorise any form of transaction that you did not initiate and remember an OTP only generates when transacting online.
How to avoid falling victim to cybercrime
1. Use strong and unique password
Ensure that you use strong, unique passwords for your online banking and other financial accounts. Combine upper and lower-case letters, numbers, and special characters to create passwords that are difficult for hackers to guess. Avoid using simple passwords like your name, surname, your children’s names or birthdays.
2. Enable two-factor authentication (2FA)
Most banks in South Africa offer two-factor authentication (2FA) as an extra layer of security. You can enable 2FA for your online banking to receive an additional code or way to verify that it is indeed you, typically sent to your mobile device. Two factor authentication is a login system that requires you to use two separate ways to identify yourself, for example, your password plus a PIN sent to your number, before you can login. This makes it harder for fraudsters to gain access to your accounts because they would need to have access to both your password and your phone at the same time. Contact your bank to find out how you can activate your 2FA.
3. Beware of phishing attempts
Fraudsters send emails and text messages that appear to be from your bank, urging you to click on a link or icon to download an attachment that redirects you to the digital banking login site. Be cautious and verify the sender’s authenticity. Banks will not ask for your digital banking login credentials via email.
4. Monitor your accounts regularly
Frequently review your bank statements and transaction history for any unauthorised or suspicious activity. Picking up on irregularities can help you act before more damage is done.
5. Use secure Wi-Fi networks
When accessing your online banking, make sure you are connected to a secure Wi-Fi network. Avoid using public Wi-Fi networks for online banking, as fraudsters may hack your digital banking profile. 6. Be wary of cold calls Beware of unsolicited calls from people claiming to be bank representatives. Legitimate banks will not request sensitive information over the phone. If in doubt, hang up and contact your bank using the official contact information from their website.
6. Stay informed
Stay informed about the latest banking fraud techniques and scams. Banks and government agencies often provide resources and information about current scams, and being aware of these can help you recognise potential threats.
7. Report suspicious activity
If you suspect you’ve been targeted by a banking fraud attempt or have fallen victim to one, report it to your bank and the South African Police Service immediately. Quick action can help limit the damage and prevent others from becoming victims
Protect your personal information, using strong passwords, and stay informed about potential threats to reduce the risk of falling victim to financial scams.
What to do if you suspect fraudulent activity on your account
Contact your bank immediately:
The first step is to contact your bank as soon as you suspect fraudulent activity on your account. Notify them about the unauthorised transactions or suspicious activity. Be prepared to provide as much information as possible about the specific transactions or incidents in question. Review your bank statement regularly to stay aware of your transactions and pick up any errors or fraud in time.
Change your passwords and PINs:
Change your online banking password, PIN, and any other access codes associated with your account. Ensure that the new passwords are strong and unique.
Document everything:
Keep detailed records of all communication with your bank, including the names of bank representatives you speak with, dates, and times of calls or visits, and reference or case numbers. Save any emails or correspondence related to the incident.
Notify the South African Police Service (SAPS):
Report the fraudulent activity to your local SAPS station. They will provide you with a case number, which may be required by your bank to further investigate the incident.
Contact the Credit Bureaus:
Alert the major credit bureaus in South Africa (e.g., TransUnion, Experian, and Compuscan) about the fraud incident. Request a credit report to check for any unauthorised accounts or credit applications in your name.
Monitor your accounts:
Continuously monitor your bank and credit card statements for any further unauthorised activity. Be vigilant for any suspicious emails or messages that may be related to the fraud.
Stay informed:
Learn about common fraud and scam techniques to avoid falling victim to future incidents. Staying informed is an essential aspect of protecting your financial well-being.
Be patient:
Resolving a fraud incident can take time. Work closely with your bank and follow their guidance. They will often have a dedicated fraud department to handle these cases.
Remember, acting quickly and following your bank’s instructions is important to help minimise the impact of fraudulent activity on your bank account. Being proactive and alert can help protect your financial security in the future.
