Banking

Capitec fraud warning

Capitec has warned that it is seeing a number of common scams which can lead to serious financial losses. 

Daily Investor spoke to Capitec about the common scams they are seeing going into 2025.

“The most prevalent scams targeting consumers include authorised push payment fraud, where victims unknowingly initiate payments to fraudsters,” the bank said. 

“This type of scam is leading to significant financial losses.”

There are also a number of other common scams Capitec has been seeing. Two of these, investment scams and Ponzi schemes, involve fraudsters promising high returns with minimal risk, often leading victims to invest in illegitimate schemes.

Goods and services scams are also prevalent at the moment. 

“Victims pay deposits or full amounts for goods or services that are never delivered,” Capitec said.

This type of fraud often involves deals that seem too good to be true and has been known to pick up during busy retail periods, such as Black Friday and December. 

Fraudsters have also increasingly been turning to social media platforms, such as Instagram and Facebook Marketplace, to find victims. 

Similarly, Capitec explained that advance fee scams are also common at the moment. 

“These scams require victims to pay a fee upfront for a job, loan, prize, or inheritance that doesn’t exist.” 

“This includes job scams, often via platforms like WhatsApp and Telegram. Victims are lured by offers of easy money through simple tasks but end up paying fees to scammers.”

Finally, the bank warned that work-from-home scams are also rampant. 

“Scammers trick victims into making multiple payments under the guise of investing or trading, often referred to as ‘Pig Butchering’.”

Capitec advised that consumers take several actions to mitigate the risk of falling victim to these scams. 

“Be sceptical of offers that seem too good to be true, especially those promising quick or high returns. If it sounds too good to be true, it likely is.”

The bank also recommends avoiding upfront payment fees for jobs, loans, or prizes. “Reputable companies will not ask for such payments,” it said.

Knowing how to identify reputable companies can be the key to avoiding falling victim to many of today’s common scams. 

“Research any investment opportunities thoroughly and ensure they are offered by authorised financial service providers.”

In general, the bank advised customers to be careful with their banking information and purchases. 

“Exercise caution with bargains on Marketplace and always meet in person in a safe, public location if exchanging goods.”

“Do not click on links in unsolicited messages asking for personal or banking information, and be wary of requests for personal details or payments from unknown sources.”

“Verify the source of calls or messages claiming to be from your bank or other trusted entities. Use official contact numbers and check your bank’s verified social media accounts.”

Fraudsters have also been known to make calls pretending to be officials from the customers’ bank, claiming that the account is compromised.

They will try to instil a sense of urgency and panic in the customer, making them believe that they could lose their money if they do not act quickly. 

As a result, the customer will give out valuable information to the fraudster without taking the proper steps to ensure that it is really their bank on the other end of the line. 

While it is vitally important for customers to take the proper steps to protect themselves, Capitec also has measures ion place to address banking fraud. 

“Capitec remains committed to educating South Africans about various scams. Our MoneyUp Chat game, Slam the Scam, offers interactive, practical examples to teach users about scam tactics and how to avoid them.”

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