The South African Banking Risk Information Centre (SABRIC) is raising the alarm on a disquieting rise in financial crime that may put a dampener on the festive season for many South Africans.
It is revealed that the recently published 2023 Annual Crime Statistics Report outlines a staggering economic loss of almost R3.3 billion due to these crimes.
The most alarming increase has been recorded in cybercrime, as SABRIC reports that criminals are now leveraging advanced technologies, including generative AI, to concoct increasingly sophisticated fraud schemes.
These include deceptive e-mails and deep fake content, which have the potential to mislead even the most vigilant individuals.
Another distressing trend highlighted in the report is the rise in fraudulent financial product applications.
It is explained that scammers have become adept at tricking victims into divulging personal details or accessing sensitive banking information, allowing them to steal money directly from bank accounts or fraudulently apply for loans in the victim's name.
Speaking about the fraudulent activities Gavyn Letley from specialist loans provider Direct Axis opines states, “Because criminals are constantly evolving, there’s no ‘foolproof’ way to avoid scams. Everyone is potentially vulnerable, but you can reduce the chances of being caught out by being vigilant.”
To help combat this rising tide of financial crime, SABRIC offers practical guidance for the public:
Verify before trusting: Always check the authenticity of phone calls, messages, or e-mails that purport to be from banks or service providers before sharing any personal information.
Don’t share personal information: Never disclose your password, PIN, or one-time password (OTP) to anyone, including those who claim to represent your bank.
Be cyber smart: Shop only on reputable websites and ensure that they have secure payment gateways. Use strong passwords for online accounts and enable two-factor authentication whenever possible.
Recognise red flags: Be suspicious of urgent payment requests for goods or services you did not order, and beware of scam approaches that exploit goodwill, such as fake charity requests.
Keep tabs on your finances: Regularly monitor your bank accounts and credit reports for unauthorised transactions or irregular changes.
Letley further warns, “Fraudsters identify and exploit vulnerabilities. Don’t think you’re too clever, tech-savvy or sophisticated to be conned. You might spot 99% of the scams but only need to make one mistake. The best protection is to keep informed about scam updates from financial institutions and err on the side of caution.”
The Star
anita.nkonki@inl.co.za