Standard Bank scam warning

Standard Bank has warned that consumers are increasingly vulnerable to scammers who exploit people looking to make significant life changes at the beginning of the year. 

The bank said that these scammers target individuals looking to change jobs, parents trying to find a school for their children, or matriculants going to university. 

This warning follows one from the bank late last year, which said that fraudsters and scammers are intensifying their efforts to obtain personal information or credit card details.

The bank also said that fraudsters are intensifying their tactics. It observed several methods being used to deceive ATM users and other vulnerable individuals. 

One common scam involves altering ATM language settings to confuse users, while another sees fraudsters activating the “cardless function” to disorient customers. 

Another tactic, especially during busy periods, is to jam card slots or PIN pads to steal cards or money. 

Scammers are targeting these groups of people with increasingly sophisticated schemes to gain access to private information. 

“As you prepare for the exciting New Year, remember that your goals, ambitions, and resolutions present an opportunity for scammers,” the head of fraud risk management at Standard Bank, Athaly Khan, said. 

“They capitalise on the uncertainty and pressure that often accompany new beginnings,” she explained. 

Scammers exploit people seeking out investment opportunities, employment, student loans, and assistance to achieve their new goals during this time of the year. 

There’s a rise in unsolicited offers, sometimes through phone calls, emails, or online advertisements, she said. 

Khan outlined some of the most common scams currently and how South Africans can avoid falling prey to them.

Investment scams

Unsolicited investment offers promising high returns with little risk tend to rise in January as scammers prey on people’s renewed financial resolutions and desire for improved personal finances.

“Be cautious of unsolicited investment opportunities, especially those offering high returns with little risk. Scammers often ask you to act swiftly so that you do not ‘miss out’ on the opportunity of a lifetime,” added Khan.

Whenever someone tries to rush you into committing money towards an investment or a service, that should be considered a red flag. 

Job scams

Fake job offers remain a persistent threat, with scammers luring victims with promises of good earning potential or easy passive income but first demand upfront fees. 

These fees often seem to cover administration or taxation costs. Khan explained that very few legitimate companies will ask you to pay fees upfront, if any, in order to be employed. 

“Scammers also use fake job offers to deceive individuals into sharing personal information, compromising your personal security,” said Khan.

This can give criminals access to your bank account or be used to commit identity fraud and apply for credit facilities using your personal information. 

Student loan scams

With the academic year beginning, scammers pose as financial service providers offering reduced-rate student loans. 

Victims are asked to pay upfront fees or share sensitive personal information. These schemes often claim ties to legitimate educational institutions, making them even harder to detect.

Miracle products

Scammers often exploit New Year health and fitness resolutions by promoting “miracle” weight-loss products or supplements.

These products are advertised with fake celebrity endorsements and fabricated testimonials, often requiring upfront payments with no results delivered.

Below are some general tips from Khan on how to avoid falling victim to scammers and handing over sensitive information to criminals. 

Protect your banking profile and safeguard your financial well-being by:

• Avoiding the sharing of personal banking information on unsecured platforms.
• Keeping your account details private to prevent becoming a victim of money mule schemes.
• Steering clear of upfront payments. Legitimate organisations never request fees in advance.
• Be cautious of deals that sound too good to be true, and never share your card information to subscribe to such offers.

Khan said double-checking things that appear too good to be true is generally a good rule of thumb, as well as ensuring you are aware of what information you are handing over.