Capitec warns its clients about fraud

South Africa’s largest bank by consumers has seen a significant global increase in the frequency and sophistication of scams across the industry and urged South Africans to take practical steps to protect their money.

Capitec told Daily Investor that it has seen a significant global increase in scams across the industry. 

“Fraud is pervasive, with criminals becoming increasingly sophisticated. So, we shouldn’t underestimate their impact,” the bank said.

“As South Africa’s leading digital bank, now serving a third of the country’s population, our focus remains firmly on our clients. Our bank was built to simplify banking and make it more accessible for all South Africans.”

“A crucial aspect of that mission is empowering our clients to protect their hard-earned money through multi-faceted fraud awareness initiatives and education campaigns.”

Through its app, Capitec often warns its users to be on the lookout for scammers and fraudsters.

In a recent warning, the bank cautioned users that scammers may call them pretending to be Capitec or send a message with a number to contact the bank.

It urged users to verify whether Capitec was truly calling them or if they were simply scammers trying to steal their money.

This is a type of scam called “vishing,” which is rising in popularity. Other local banks have also recently warned about this type of scam.

Vishing is a type of phishing attack that uses voice communication, such as phone calls or voice messages, to trick individuals into revealing sensitive information. 

Scammers may pose as representatives from legitimate companies or government agencies and use scare tactics, urgency, or impersonate trusted individuals to gain your trust.

They may ask for personal information such as credit card numbers, social security numbers, or bank account details.

Scams have also become more prolific during this year’s tax season, with fraudsters pretending to be the South African Revenue Service (SARS).

Through its app, Capitec warned clients that scammers pretending to be SARS may call, email, or SMS taxpayers asking for personal, tax, banking, or eFiling details.

They do so using fake claims like tax refunds, outstanding payments, or letters of demand.

To combat fraud, Capitec provided several practical steps the bank’s clients can take to safeguard their finances: 

• Stay informed: Leverage Capitec’s educational resources by using its tools, including its MoneyUp Chat Slam the Scam Challenges, where you can learn about scam tactics and how to avoid them through interactive practical examples. Additionally, the bank’s Fraud Centre on the Capitec website provides extensive information, including the latest scams and how to avoid them.
• Practice safe digital habits: Always access Capitec’s official website or app directly. Be cautious of public Wi-Fi when banking, and always log out completely after each session. Remember, your bank will never ask for your password, PIN, OTP, or Card details via email, phone, or text. A benefit of digital banking is 24/7 access to your transactional information, allowing you to review your accounts and transaction history day or night. However, please don’t hand over your cellphone device or SIM card to someone you don’t know; they might be trying to gain unauthorised access to your banking app.
• Act fast: Report any suspicious activities or potential scams to Capitec immediately.
• Be cautious online: Avoid clicking on links in emails and messages claiming to be from Capitec asking you to share personal or banking information. Examples include courier scams asking you to pay an outstanding fee or update your information to receive a delivery. These links are malicious and designed to steal your information and money. 
• Verify Capitec messages and phone calls: Scammers impersonate banks and other trusted service providers. If you receive a call from someone claiming to be from your bank’s fraud department, remember that your bank will never call and ask you to authorise or perform a transaction to stop or reverse fraud or a debit order. Capitec now has a verification feature in its banking app that lets you verify whether you are talking to a Capitec agent by signing into the app while on a call. Hang up if a call sounds suspicious, and call your bank or service provider on their official number. 
• Know how to identify scams: If it sounds too good to be true, it’s probably a scam. Watch out for promises of unbelievable investment returns, bargains on Marketplace and unknown brands. Stick to what you know and do your research. Also, never pay an upfront fee to get a job, loan, pet or prize money. Legitimate companies won’t ask you this. Beware of messages on platforms like WhatsApp and Telegram with offers to make easy money through simple tasks like following and reviewing brands.
• Strengthen your passwords: Use strong PINs that no one can guess, and never share your PINs or OTPs with anyone. Avoid using your date of birth as your PIN, and never save your PIN in a note on your phone; instead, use a password protector. If available, rather use biometrics to access your banking apps.

South Africans should remain alert and be on the lookout for scammers trying to steal their hard-earned money.