As people move into festive season, unwind and let their guard down, fraudsters are amplifying their efforts to take advantage of unsuspecting victims, according to Renita Govender, Retail Communications Specialist, Allan Gray.
"Our personal information is valuable, yet we are required to disclose our details frequently to access our bank accounts and investments, among other things," Govender said.
Fraudsters and cybercriminals know that people are more likely to unwillingly share their information when they are on holiday mode.
Therefore, taking steps to secure information and being aware of the red flags, can decrease the likelihood of people being scammed this festive season.
Govender shares tips to help investors protect their personal information and avoid falling prey to common scams.
Be wary of sharing your personal information
According to Govender, fraudsters impersonate financial service providers and other legitimate organisations in an attempt to get personal information using SMSes, fake websites, emails and phone calls.
Once they have your personal information, they can use it for various scams.
As a rule of thumb, you should be mindful of sharing your personal information, password and one-time passwords (OTPs) especially if you did not initiate the interaction.
Common red flags to look out for include:
- A sense of urgency for your response
- Not being addressed by name for example Dear client or Hi Sir/Madam
- Poor spelling and grammar mistakes
- Incorrect contact details for the service provider. You can check these details against the information provided on the official website of the organisation.
Lookout for phishing attempts
Govender said that phishing remains the most common way that cybercriminals prey on victims. The rising popularity of online shopping and promotions makes it easier for cybercriminals to trick people.
Avoid clicking on links or downloading attachments from unfamiliar sources
Before you click on any links that are sent via text or email, hover over them to confirm that the URLs are legitimate.
If the URL is different from the text in the email body, then it may be a phishing threat. Instead type URLs directly into your browser or visit the official website to see their offers.
Always check the sender’s email address
Cybercriminals may use an email address that looks very much like a trusted email address, for example, info@allengray.co.za instead of info@allangray.co.za.
Make sure to always check email addresses against those provided on the organisation’s official website.
Transact with reputable retailers and service providers
When making online payments, ensure that you are using legitimate, reputable service providers and retailers that have secure payment facilities, as fraudsters often set up websites that resemble trusted sites in order to get your banking details.
Enable banking notifications that alert you to payments made from your account and immediately report any OTPs you did not request as well as fraudulent activity to your bank.
If you are not sure whether the online retailer is legitimate, do an online search for their official website and check for customer reviews on reputable platforms.
If it seems too good to be true, then it usually is
Fraudsters are aware that many people receive bonuses and other cash lump sums during this time of the year.
Govender said that you should be wary of anyone who approaches you with an opportunity to generate high returns on an investment in a short period
To avoid fishy investments, only engage with licensed financial advisers and reputable investment managers that are registered with an industry body such as the Financial Sector Conduct Authority (FSCA).
"Your investment manager should be transparent about how returns are generated, clear about the level of risk you are taking on and realistic about the range of returns you can expect to achieve," Govender said.
"It is usually very difficult to recoup losses from fraudulent schemes, therefore it is important to stop fraud before it happens."
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