Capitec fraud warning

Capitec warned consumers to be careful of Marketplace scams, which are becoming increasingly prevalent and sophisticated.

This is according to feedback from Francois Viviers, group executive of marketing and communications at Capitec, who told Daily Investor that fraudsters are exploiting online platforms.

He explained that Marketplace scams occur when fraudsters use online platforms, such as Facebook Marketplace or Gumtree, where goods or services are bought and sold.

“These scams often involve fake listings, counterfeit items, or sellers who demand upfront payment for goods that are never delivered.”

Marketplace scams are among several common scams Capitec is seeing now. Viviers said the bank has also seen a rise in Authorised Push Payment (APP) Fraud.

APP fraud tricks victims into making payments to fraudsters posing as legitimate contacts. Investment and Ponzi Schemes, where fraudsters promise guaranteed high returns with little or no risk, are also on the rise.

Advance fee and job scams, which involve paying upfront for fake jobs or loans, are also increasing. Scammers often use WhatsApp or Telegram to trick victims.

Similarly, work-from-home scams are also prevalent at the moment. “Victims are drawn into fake trading or investment schemes requiring multiple payments.”

Finally, Viviers said that courier scams are also on the rise. These scams, similar to Marketplace scams, involve consumers paying for goods that are never delivered.

Scammers are becoming increasingly sophisticated. However, Viviers explained that there are still tell-tale signs that can help consumers spot a potential Marketplace scam before it’s too late.

According to Viviers, common red flags include deals that seem too good to be true or are priced far below market value and sellers who pressure buyers into urgent payments or try to move conversations off the platform.

Other warning signs include poor grammar, vague product descriptions, and the use of stock images instead of real photos.

Scam profiles are often newly created and may appear suspiciously fake, featuring stock photos, religious imagery, or fabricated family photos.

Viviers also urged buyers to be cautious of sellers who ask to use e-hailing delivery services instead of arranging face-to-face meetings.

In general, sellers who refuse to meet in person or provide verifiable contact details should be avoided.

Another red flag to watch out for is those claiming a vehicle is located in a distant town and requesting upfront payment for delivery.

Emotional narratives – such as emigration, a sick child, or personal tragedies – can also manipulate buyers by gaining sympathy and discouraging negotiation.

Avoiding Marketplace scams

“Online shopping and second-hand trading can be convenient and cost-effective, but they also require vigilance,” Viviers said. “A cautious approach can help consumers steer clear of fraudulent sellers.”

Capitec advised consumers to take several precautions to protect themselves. Always meet sellers in a public, well-lit area with CCTV and inspect the goods before paying.

Avoid making upfront payments or deposits, especially to individuals you do not know or trust. Use secure payment methods and be cautious of EFTs to private accounts.

Report any suspicious listings or users directly to the platform. Be alert to high-pressure tactics, as scammers often try to create a false sense of urgency.

Lastly, never release goods unless the money has cleared in your account. Claims of payment accompanied by fake proof of payment or SMS notifications are common scam tactics.

If a consumer realises they have been victimised by one of these scams, Viviers urged quick action, as this can limit the scam’s impact.

“If you suspect that you’ve been targeted, there are immediate steps you can take to try to recover your funds and protect your information.”

If you believe you’ve been scammed:

• Contact your bank immediately – there may still be time to intervene.
• Report the matter to the South African Police Service.
• Inform the platform where the transaction occurred.
• Notify the Southern African Fraud Prevention Service (SAFPS) to help safeguard your identity and credit profile.

“Consumers can reduce their risk of falling victim to scams by staying informed and taking proactive steps,” Viviers said.

“Capitec encourages all clients to be cautious of high-pressure sales tactics and to never make upfront payments to unverified individuals or for unconfirmed goods or services.”

He added that it is also vital to research any investment opportunities thoroughly and ensure credible, authorised financial providers back them.