If you’ve received a dodgy email, a dubious text or a sketchy phone call from someone who’s obviously trying to scam you… You’re not alone. A 2024 TransUnion survey found that about 60% of South African consumers reported being targeted by various forms of fraud.
The good news is, most scams come with warning signs. If you know what to look for, you’ll go a long way to avoiding becoming a victim.
For example, a scam email started doing the rounds during the recent tax season. It said:
“Dear Taxpayer,
SARS have issued the above Letter of Demand, which requires your urgent attention. COURT SUMMONS AND BLACKLISTING Imminent: If this is not attended to within the next 48hours
Corporate and Professional Bodies”
The Tell-Tale Signs of A Scam
This has all the markers of a scam. There’s the bad grammar, the fake logo, the fake email (@sarslegal.co.za, which does not exist), the fake website (www.sarsgov.com, which does not exist) and the fake address (15 Anvil Street in Isando, which is not the SARS office but just a random business park).
The fake address is an easy one to check. “Google is your friend,” advises the South African Fraud Prevention Service. “Google Maps will help determine whether an address is real or just an empty lot.” And, in this case, it totally does.
That’s one example. Another example on the SARS scam list was a fraudulent SMS claiming that you’re eligible for a tax refund (which is often more than the tax you paid in the first place)! Like loan scams, this has the obvious red flag of being too good to be true.
What Is A Loan Scam
In loan scams, fraudsters try to reel you in by making big promises. “Scammers will deceive you into paying them money in the hopes of securing a bigger loan,” warns Elmi Kemp, Communications Lead at the SAFPS. “They could ask for things like an administration fee, processing fee or insurance on the loan. Once payment is made, the scammers will disappear. They also use the process to gain access to your personal data (via phishing), which they will use to commit application fraud, open bank or store accounts and even take out loans in your name.”
That’s a huge problem in South Africa, where the TransUnion report found that 5.1% of all attempted digital account logins and 2.9% of account openings were suspected of being fraudulent.
“Vigilance is key,” says Kemp. “Be alert to what is being presented to you. Remember, if it looks too good to be true, it probably is.”
Social Engineering: The Main Ingredient
Social engineering is another red flag that often goes unnoticed. Here, scammers will create an entire fake profile and then befriend you online. “People are more likely to trust a friend over a stranger,” warns Nazia Karrim, the SAFPS’s Head of Product Development. “Social media could become a dangerous platform for consumers if it's not used with care, giving scammers access to information about you, your family, and your social habits and lifestyle.”
Scammers love having access to your personal data – and they’ll try anything to get it. If a fake online friendship or a fake tax-related email doesn’t work, they could even try their latest trick: online quizzes.
That’s right: an innocent-looking online questionnaire can be used to get information, like the name of your first pet, your date of birth, and so on, that could be useful in answering a security question to access your online banking.
The red flags are there. You just need to watch out for them. For more tips and tricks on maintaining your online safety, click here.
