Standard Bank scam warning

Standard Bank has warned clients about increased fraud activity during the festive season as criminals look to exploit the period of elevated consumer spending. 

This activity has also become increasingly sophisticated through the impersonation of legitimate companies and the bank itself to gain access to personal information. 

These scams have also begun to include the impersonation of authorities, such as the police, SARS, and the Reserve Bank. 

Standard Bank’s Head of Fraud Complaints Management and Awareness, Riyadh Mahomed, urged South Africans to stay alert as criminals exploit the rush and chaos of this period.

“They know we’re spending more and are often distracted, and they use panic and pressure to push customers into acting irrationally,” he said.

“Fraudsters prey on customers, going into a state of panic and chaos. So, it is all about calming down, slowing down, and, if you are not sure, cancel the transaction.”

Criminals during this time of the year do not only look to exploit online transactions, but also traditional fraud and scams are still prevalent. 

This includes shoulder-surfing at ATMs to steal PIN numbers, card details, or to clone cards, as well as calling individuals asking them for OTPs and bank details. 

“Do not compromise any of your details. Your bank will never call you and ask you to confirm your card number, your CVV number, or share an OTP,” Mahomed said. 

“When it comes to making payments online, make sure to verify the details of the company you are making payments to. If you have the slightest element of doubt, put the phone down and cancel the transaction.” 

Mahomed highlights several scams that typically increase at this time of year. These include –

• ATM scams: Fraudsters loiter near ATMs to shoulder-surf, stealing PINs, card details, or cloning cards as customers withdraw extra holiday cash.
• Card-Not-Present fraud: Criminals use stolen card numbers, CVV codes and expiry dates to make online purchases.
• Change-of-banking-details scams: Fraudsters alter invoices of legitimate companies, changing their banking details so payments are diverted to their accounts.
• Vishing calls: Scammers impersonate the bank and pressure customers into revealing card numbers, CVVs or one-time passwords (OTPs), all information the bank will never request.

These kinds of fraud are coupled with a rise in phishing or vishing scams, whereby fraudsters send out ‘bait’ emails and SMSes to gain access to personal information. 

Scams on the rise

Standard Bank has previously warned South Africans about a significant rise in extortion scams targeting banking customers through email and text channels. 

The bank said this rise has resulted in considerable financial implications for thousands of South Africans in recent months. 

These scams, particularly phishing, have become increasingly complex and are now targeting South Africans beyond their financial life. 

Scammers are increasingly targeting individuals seeking to change jobs, parents searching for a school for their children, or matriculants preparing to attend university.

Standard Bank’s Athaly Khan explained the growing sophistication of these schemes, with fraudsters continually adapting their tactics to deceive individuals into sharing sensitive information. 

In some cases, victims are even coerced into transferring money from their accounts to the fraudsters’ accounts using their banking app or an ATM. 

One of the tactics being increasingly used by scammers is fake non-compliance notifications to induce individuals to share confidential information. 

With this method, fraudsters exploit the bank’s need to comply with the Financial Intelligence Centre Act (FICA).  

They pretend to be the bank, sending customers emails and SMSs, claiming that their accounts are not FICA compliant.

“Their emails and SMSs include malicious links, urging customers to click on or risk their account being blocked or closed,” Khan explained.

Upon clicking the link, customers may be redirected to a fake login site or prompted to enter sensitive information, such as their card number, expiration date, customer verification value (CVV), or one-time password (OTP). 

In some instances, the link may disrupt the customers’ devices, giving the fraudsters remote access and total control.

Extortion scams are also on the rise, where criminals threaten to harm individuals, expose sensitive personal information about them or tarnish their reputations unless a ransom is paid. 

“We’re increasingly seeing fraudsters impersonate respected bodies such as the South African Reserve Bank, SARS or the SAPS,” Khan said. 

“They claim to be investigating customers for serious offences, anything from fraud to money laundering.”

In some schemes, victims are given a fake account number and instructed to transfer all their funds for the duration of the “investigation.” 

In others, the criminals allege they possess compromising material such as private photographs, financial records or other personal details, and demand payment in exchange for keeping it confidential.