SOUTH Africans have faced increased risk when it comes to becoming a victim of fraud over the past year, according to the latest statistics released by the Southern African Fraud Prevention Service (SAFPS).
The statistics compare the first five months of 2022 to the same period in 2021.)
Manie van Schalkwyk, the chief executive at SAFPS, said this was particularly concerning given the economic climate that the country was currently facing.
"Consumers are facing a significant cycle of high inflation and are looking for ways to make ends meet. This makes them increasingly vulnerable to scams and schemes which are being carried out by highly motivated, highly skilled fraud syndicates," he said.
One of the crimes that the SAFPS has noticed an increase in is what is called a money mule. This is when a person approaches someone else and asks them if they can use their account to send money to a relative in another country.
"While this should immediately be a red flag, you will be surprised at how many people willingly comply in the hope that they can be of assistance," Van Schalkwyk said.
The misuse of accounts through fraudulent conduct, the risk of money muling, has increased by 97 percent over instances recorded last year.
"This is a significant problem and not only limited to South Africa. Money muling is a significant global risk. Reports from Cifas in the UK point out that money muling funds illegal activities such as money laundering, terrorism and human trafficking. Obviously, this is concerning, particularly within the South African content."
To prevent this, Van Schalkwyk urged the public to remain as vigilant as ever and to be very protective of their banking details. "The person in front of you may be a person who is in genuine need. However, they may also be a fraudster."
He added that biometrics was adding an extra sophisticated layer of security to try and prevent financial crime from taking place. However, this makes fraudsters more insistent and increases the level of involvement from the public as they want to lend a helping hand.
Impersonation has always been a significant crime is South Africa as fraudsters prey on their victims through phishing, smishing and vishing.
"Impersonation increased by 264 percent for the first five months of the year compared to 2021 and could be linked to recent major data breaches. The various data breaches have all highlighted the vulnerability of personal information and how easily accessible they are to the motivated criminal,” said Van Schalkwyk.
South Africa has one of the highest reported unemployment rates in the world. Current statistics from Stats SA report that the official unemployment rate is 34.9 percent.
"In an effort to increase employability, we are seeing an increase in false qualifications, which has increased by 158 percent over the cases reported in 2021," he said.
Gauteng, the economic hub of the country, is the province which has the highest fraud stats. The SAFPS points out that the province makes up 62 percent of the country’s total fraud incidents and that the number of fraud incidents that were recorded in 2022 increased by 117 percent over the number of incidents reported in 2021.
KwaZulu-Natal contributed 18 percent of the fraud incidents in 2022, and the SAFPS points out that the number of incidents reported this year increased by 106 percent over those recorded in 2021.
Van Schalkwyk said the interesting statistic for the SAFPS was the increase in the Western Cape, where there there were visible signs of an increase of fraudulent activity in this province. The Western Cape made up 8 percent of the country’s total fraud incidents, and there was a 133 percent increase over the number of fraud incidents reported in 2021.
Meanwhile, cybersecurity firm Kaspersky experts yesterday warned to be extra careful of investing in cryptocurrency and that a new scam is going around.
“With many rates unstable, crypto scammers have turned to new ways to hook their victims. have witnessed one such unusual scheme, in which attackers promote fake crypto services on YouTube. They are trying to reach those interested in cheap cryptocurrency by leaving comments on popular videos – but of course, the currency won’t be received,” it said.
There are means for consumers to get protected against fraud.
Protective Registration is a free service protecting individuals against future fraud. Consumers apply for this service, and the SAFPS alerts its members to take additional care when dealing with that individual’s details.
Protective Registration provides an added layer of protection and peace of mind regardless of whether the identity of the applicant has been compromised.
“If a member of the public wants to become proactive in the fight against fraud, the SAFPS is there to serve them. Visit the website on www.safps.org.za. Through Fraud Victim Registration, the SAFPS will assist applicants in preventing fraud that is a result of identity theft and impersonation.
This will protect applicants from associated financial implications. The SAFPS will issue applicants with a Victim of Impersonation Letter which they can share with future credit providers to assist in any verification processes.
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