Scam Alert! Beware of These Practices

Several financial and regulatory institutions have recently distributed warnings to consumers about recent activity among scamsters intent on parting you from your money or stealing your identity. They range from sending fake tax refund notices to deepfake video scams that imitate celebrities.

Fake SARS communications

The Southern African Fraud Prevention Service (SAFPS) warns that, with the onset of tax filing season at the beginning of July and with SARS introducing measures to simplify submissions for taxpayers, fraudsters and scammers are taking advantage of this period to craft sophisticated scams that mimic official communications. These include:

• Phishing emails and SMSs: These look like authentic notifications from SARS. They could ask you to verify your banking details or personal information, inform you of a refund due to you, or say that they are auditing your refund, and redirect you to a malicious website.

• Impersonation: Scammers impersonate SARS representatives, claiming to want to help you with your tax return or to follow up on payments or refunds and asking you to provide personal details. “An official SARS representative will never ask for this information,” says Manie van Schalkwyk, head of SAFPS.

• eFiling profile hijacking: This is when fraudsters take over existing profiles or impersonate a valid taxpayer’s profile and change banking or other details to redirect refunds to fraudulent bank accounts, which have been set up for this purpose.

• Fraudulent letters of demand: The SARS website has examples of fraudulent letters claiming that SARS attorneys have issued a letter of demand requiring urgent attention. The letter prompts the taxpayer to pay an outstanding amount of money into a fraudulent bank account purporting to be a SARS account.

Virtual banking card fraud

All digital banking platforms now offer virtual banking cards, which can be loaded on phones and other devices. Unfortunately, this digital alternative is also increasingly being used by fraudsters when targeting unsuspecting bank customers.

Nerosha Maseti, the Lead Ombud for Banking and Credit at the National Financial Ombud Scheme, said while virtual cards offer enhanced convenience and security, they are not immune to fraud. The ombud’s investigations reveal that virtual cards are typically compromised through unauthorised access to a consumer’s banking app. In the majority of reported cases, the compromise and use of virtual card numbers to perform transactions occurred only after a customer’s digital banking credentials were compromised.

“Despite ongoing awareness campaigns by banks, the majority of complainants to our office indicated that they were unaware of the existence or use of virtual cards,” she said.

Maseti said consumers have the responsibility to keep their confidential access credentials safe and secure, and immediately report any suspicious activity to their bank.

Car auction scams

WesBank warns car buyers of a resurgence of online auction scams, particularly on platforms such as TikTok.

The scammers create convincing fake accounts, purporting to be official bank representatives selling auction vehicles. They lure unsuspecting buyers with seemingly irresistible deals, pressuring them to pay over large sums of money to “secure” what appears to be an auction-listed vehicle.

However, once the payment is made, the scammers quickly close their fake accounts and vanish with the customer’s money, leaving their victims with no recourse.

Lebo Gaoaketse, head of marketing and communication at WesBank, emphasises the importance of dealing with trusted sources. “Always ensure that you are dealing with a registered auction house, and in the case of a bank auction, an official bank representative. Do not be enticed into accepting unofficial offers. It is often a ploy to defraud those looking for a good deal. Trust your instincts and proceed with caution. It’s better to err on the side of caution than to fall victim to a fraud scheme,” she says.

Rogue online suppliers

The National Consumer Commission (NCC) has identified a number of online suppliers who have accepted payments from consumers but failed to deliver goods or services or delivered defective goods. In many cases, these suppliers have vanished from their known addresses, while some have shut down their websites, making it impossible for consumers to contact them. 

The NCC urges consumers to be cautious when transacting with online suppliers, making sure the supplier is a trusted source, with a verifiable address and contact details.

Deepfake audio and video scams

Nic Laschinger, chief technology officer at cloud-based telephony provider Euphoria Telecom, says that while AI has many benefits for businesses, the risks cannot be ignored. One of the most urgent threats is the use of AI in voice fraud. Current scams include someone claiming to be from an institution’s fraud department calling to alert you to an illegitimate transaction on your account and asking you to give them an OTP to reverse it. This OTP is used by the scammer to access your account and steal money.

“Today, fraudsters are using AI to clone voices with remarkable accuracy. These tools can replicate a person’s tone, accent, and speech patterns. Once a voice is cloned, it can be used to impersonate someone in a convincing and highly manipulative way,” Laschinger says.

The Financial Sector Conduct Authority has issued numerous warnings about deepfakes, encouraging businesses and consumers to be vigilant in the face of scams using deepfake video imagery of public figures to promote investments. These range from politicians such as President Cyril Ramaphosa to celebrities like Siya Kolisi and CEOs of local firms.

How to avoid becoming a victim

The institutions offer the following tips to stay safe:

• Never share usernames, passwords, PINs or other sensitive information.

• Verify email addresses and bank account numbers before transferring money.

• Implement robust cybersecurity practices. Use strong and unique passwords, avoid public wi-fi when working with sensitive information, and implement multi-factor authentication where possible.

• Be wary of a sense of urgency or pressure. “In general, be cautious when there is a sense of urgency, or the person or communication is trying to intimidate you or elicit a sense of fear,” Van Schalkwyk says.

• Set spending limits on your bank cards and accounts.

• Beware of “too good to be true” offers. Be vigilant for potential scams, especially on online platforms. Always ensure you’re dealing with a reputable supplier.