Common scams in South African banking
Cybercrimes in banking are illegal activities that use technology to target banks and their customers. These crimes can range from simple phishing scams to complex malware attacks.
Some of the most popular banking cybercrimes and scams in South Africa include:
- Phishing: Fraudsters send emails with links, icons or attachments claiming to be from the bank to trick you into sharing your personal banking information like login credentials, OTPs (one-time PIN) or credit card details. They will send an email with a link to a fake website that looks like your bank’s website. The fake website will ask you to enter your banking login details. Once you’ve entered them, they will use your details to access your account and take your money.
- Vishing: Fraudsters call you pretending to be from the bank or a reputable company. They may ask you for your digital banking login credentials, passwords, PINs or OTPs. They may also say that the security of your account is under threat and tell you to make payments to secure your account. They make the situation seem urgent and that they need your banking details urgently to save your money from being stolen. Meanwhile, they will use your details to access your account and steal your money. Your bank will never ask for your bank PIN and passwords.
- Smishing: Smishing attacks involve sending fraudulent SMS messages to victims. Scammers will often use these messages to trick victims into clicking on malicious links or downloading malware. Malware is software that will send whatever you type on your device to the scammers. They will be able to see your login details when you login to your apps. This will allow them to steal your private information.
- ATM card swapping: Fraudsters often work in groups to swap cards. One person may distract you while another makes the card swap. The will also “shoulder surf” your PIN, which means that they stand close enough behind or around you to see you type in your PIN. You then leave the ATM with a card that is not yours.
- Change of banking details: Fraudsters may trick you to make payments into bank accounts that do not belong to the intended recipient. Before making any payment, please call the intended recipient to confirm banking details and use AVS (account verification services).
- Investment scams: Fake investment scams involve scammers offering victims high-return investments that are fraudulent. These scams often target people who are looking for ways to quickly make money. They may say there is a new investment market like Bitcoin, for example, and claim that your money can be multiplied in a matter of days. Once you send them your money, they disappear. These scammers normally use fake social media accounts with images of other people in their profile. Always consult your bank or a financial advisor before deciding to invest in something you’re not sure of.
- Loan scams: Loan scams involve scammers offering loans with low interest rates and easy terms. The scammers will need a payment from the victim to secure the loan. However, once the victim has agreed to the loan, the scammer will disappear with the money.
Tips for safe banking:
- Never enter your login credentials after clicking on a link that redirects you to a Standard Bank login screen.
- Never share your OTP (one-time PIN) with anyone to authorise any form of transaction that you did not initiate and remember an OTP only generates when transacting online.
- Never transfer any funds to invest without first checking if the company is legitimate.
If you think you may be a victim of a banking cybercrime or scam, contact your bank immediately.