How to avoid common scams this festive season

The season of cheer is in full swing! For most people, the holidays are the perfect time to be merry with family and friends. 

However, some people could steal your festive season joy faster than The Grinch – scammers. Criminals are on the prowl this December, hoping to scam unsuspecting shoppers out of their hard-earned money. 

The South African Banking Risk Information Centre’s (SABRIC) 2023 Annual Crime Statistics report shows an alarming rise in financial crime has resulted in an economic loss of almost R3.3 billion.

Cybercrime is of particular concern, with reported cases of digital banking fraud increasing by a troubling 45%. Scammers intensify their criminal activity during the holidays, and technological advancements make their crimes more sophisticated. 

"The use of generative AI to accelerate 'do-it-yourself' fraud is on the increase and includes deepfake content such as emails, voice, video, and code creation to set up scam websites," SABRIC stated. 

Another financial crime category that escalated was fraudulent financial product applications.

Scammers typically attempt to obtain your PIN code or one-time password (OTP) to steal money from your bank account or get you to reveal your personal details to apply for loans or other financial products in your name.

Gavyn Letley from DirectAxis says, “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.”

Here’s what to look out for and some ways to avoid common scams.

ALSO READ: 3 Essential shopping safety tips you need to know

Verify before trusting:

• Check the authenticity of phone calls, messages, or e-mails pretending to be from banks, retailers, or service providers before providing any information. Don’t provide your personal details on the phone even if the caller says they’re from the bank or an IT company.
• Don’t click on links in e-mails or SMS messages. Contact them using official contact details, not those provided in messages. 
• Be suspicious of messages claiming you’ve won a prize, inherited money, or are eligible for a low-interest rate loan. 

Don’t share personal information:

• Never give anybody your password, PIN or OTP, even if they claim to be from the bank or a reputable company.
• Don’t share your ID number, address, or other personal information on social media platforms.
• Don’t throw out documents containing personal details. Shred or destroy them before disposal.

Be cyber smart:

• Only shop on reputable websites with secure payment gateways (look for ‘https’ in the URL and a padlock icon).
• Use strong passwords for online accounts, ideally a mix of upper- and lower-case letters, numbers, and symbols.
• Enable two-factor authentication wherever possible.
• Keep your bank cards and mobile devices secure, especially those used for online banking. If your cards are lost or stolen, report and block them immediately.
• Do not access online banking, make purchases, or share sensitive information on public Wi-Fi. Use a VPN if necessary.
• Install and update reliable anti-virus software.
• Never allow unauthorised people to access your devices remotely.
• Don’t let unauthorised people into your home or devices even if they claim to be technicians.

ALSO READ: SA must take cybercrime more seriously - expert

 Recognise red flags:

• Beware of urgent payment requests for goods or services you didn’t order, and unusual payment methods such as gift cards, cryptocurrency, or wire transfers. These are often used in scams.
• Scammers exploit goodwill with fake charity requests. Donate directly to known organisations instead of responding to random requests.
• Be wary of upfront payment requests for goods, and services or to release prizes or other funds.
• Look for spelling mistakes, outdated logos, unusual e-mail addresses or non-business e-mail domains, like Gmail, in communications.

ALSO READ: South Africa’s used car scams: How to spot a faulty deal

Keep tabs on your finances:

• Check your bank accounts and credit reports regularly for unauthorised transactions or sudden changes. Free tools such as Pulse allow you to check your credit rating as often as you like.
• Report any suspicious activity to your bank or financial service provider. Fraud departments can help investigate and shut down scam accounts or websites.

Letley says, “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 take note of scam updates from your bank and other financial institutions, keep yourself informed, be very careful and, if unsure, err on the side of caution.”

ALSO READ: Durban Metro Police alert citizens about job scam

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