Standard Bank fraud warning

Standard Bank warned against fake job advertisements, which are increasing as many South Africans struggle to find work.

Although South Africa saw a slight increase in its employment rate in the final quarter of 2024, which dropped by 0.2 percentage points, it remains incredibly high.

According to the latest Quarterly Labour Force Survey (QLFS) released by Statistics South Africa on Tuesday, the country’s employment rate was 31.9% at the end of Q4 2024.

It is also important to remember that the official unemployment rate excludes discouraged job seekers. These individuals are unemployed but have stopped actively searching for work.

The official rate is 32%, rising to 42% when discouraged job seekers are included. Among young people aged 15 to 24, unemployment reaches a staggering 60%.

Standard Bank explained that as the social and economic pressures to find employment intensify, fraudsters exploit these vulnerabilities to steal money and personal information from unsuspecting job seekers.

“Standard Bank understands the immense pressure individuals face in securing employment. Unfortunately, fraudsters are intensifying their efforts, using this societal pressure point to deceive and defraud job seekers.”

These scammers post fake job advertisements, often promising high salaries with minimal effort. However, their true intent is to steal your information or money.

Scammers frequently list hiring ads on social media platforms such as Facebook, Instagram, LinkedIn, and WhatsApp, pretending to offer legitimate job opportunities.

These ads often promise high salaries for little work and upfront payments or commissions, which should be a red flag for job seekers.

To protect yourself from falling victim to these scams, Standard Bank advised that customers should always cross-check the details of the hiring company, including verifying its name, contact information, and website.

It’s crucial to contact the company directly through official channels, such as a verified email address, phone number, or official website, to confirm whether the job offer is genuine and not part of a scam.

Customers should be wary of any job offer requiring them to pay upfront for training, equipment, or other fees. Legitimate hiring companies will never demand upfront payments.

Also, the bank said not to disclose sensitive information. Never share personal information such as identity numbers, bank details, or one-time passwords (OTPs) over the phone or online.

Finally, customers should be cautious of work-from-home jobs promising high pay. “Jobs that promise substantial earnings for minimal effort are often too good to be true.”

If anyone suspects they may have fallen victim to this type of scam, it is recommended that they call their bank’s fraud line.

Job scams on the rise

Standard Bank is not the only bank warning against this type of scam. Earlier this year, Capitec told Daily Investor that work-from-home scams are rampant.

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

Capitec advised that consumers take several actions to mitigate the risk of falling victim to these scams. Firstly, they should 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 recommended avoiding upfront payment fees for jobs, loans, or prizes. “Reputable companies will not ask for such payments,” it said.

According to Indeed, a job search platform, work-from-home scams can take several forms and employ several common methods.

One popular tactic is the faulty check scam, where you’re sent a check for more than you’re owed and asked to return the difference. However, the check later bounces, leaving you out of pocket.

Indeed said job seekers should also be cautious of jobs that require workers to recruit others. Some multi-level marketing (MLM) schemes focus more on your ability to bring in new people than actual work.

They often demand large upfront purchases and offer little real income. Also, avoid jobs that require you to pay for training with promises of fast success.

This is because trustworthy training resources will not guarantee instant results or charge high fees without delivering proven value.

Finally, Indeed warned against scams involving medical billing jobs, which often require you to buy equipment with the promise of reimbursement.