FESTIVE SEASON FRAUD WATCH: HOW TO STAY SCAM FREE THIS DECEMBER

By Hawa Osman | Compliance Assistant 

As the festive season approaches, many South Africans are ready to relax and unwind with family and friends. While it’s true that online fraud is a year-round concern, statistics show that opportunistic scammers seize the chance to exploit the holiday spirit. During this time, vigilance often drops, creating the perfect opportunity for cybercriminals to strike.

According to the South African Banking Risk Information Centre’s (SABRIC) Annual Crime Statistics Report for 2024, digital banking fraud remains the most prevalent financial crime in the country, with reported incidents nearly doubling and losses exceeding R1.4 billion. 


Common Scams to watch out for this festive season and How to stay safe  

  1. Phishing and Smishing 

    Phishing (email scams) and smishing (SMS scams) remain popular tactics where fraudsters impersonate trusted organisations to trick victims into revealing personal or banking information. 
  2. Vishing 

    Vishing involves phone calls from scammers posing as legitimate institutions. Victims are pressured to act urgently to prevent supposed financial loss. 

  3. Investment Scams
    Fraudsters lure victims with fake investment opportunities promising high returns and minimal risk often involving cryptocurrency, property, or shares in non-existent companies. 

  4. Purchase Scams 
    Criminals create fake online stores, frequently advertised on social media, to deceive consumers into paying for goods that are never delivered. 

In today's digital landscape, a critical defense against scams is the principle of: verify before trusting. You should always confirm the authenticity of any unsolicited calls, emails, or messages, especially those claiming to be from your bank or service providers. A key rule is never to click on links or download attachments from unknown or suspicious sources, as these are common vectors for malware and phishing attempts. Instead of using the contact information provided in an unexpected message, use official, known contact channels to verify the communication. Maintain extra caution regarding messages that claim improbable scenarios, such as you've won a large prize as this is classic social engineering tactic designed to lower your guard. 

Building upon the foundation of verification, the next crucial defense against identity theft and financial fraud is the strict adherence to: don't share personal information. Your password, PIN, and especially any one-time PIN (OTP) are sacrosanct and must never be shared with anyone, regardless of whether they claim to represent your bank or any other trusted institution. Legitimate organizations will never ask you for this sensitive data. 

The ultimate protective layer is maintaining a cyber smart approach to all online activity. When shopping online, prioritize security by only using reputable websites that feature secure payment gateways. A fundamental defense is using strong, unique passwords for every account and enabling two-factor authentication (2FA) wherever this option is available. 

A vital line of defense against financial fraud involves learning to recognise red flags in unsolicited communications. You should be immediately suspicious of any urgent payment requests, particularly those related to goods or services you never ordered, as fraudsters frequently leverage a sense of crisis to bypass critical thinking. Furthermore, be highly cautious of demands for unusual or irreversible payment methods such as cryptocurrency, gift cards, or direct wire transfers, which are often the preferred conduits for scammers seeking untraceable funds. When scrutinizing emails, look for critical warning signs like spelling errors, the appearance of outdated company logos, or unprofessional sender domains that do not precisely match the legitimate entity's official website. 

Cyber criminals thrive on distraction and urgency especially during the festive season. Staying alert, questioning unexpected requests, and practising safe online habits are your best defences. As you celebrate with loved ones, take a moment to secure your finances and digital footprint. A few extra seconds of caution can save you months of financial and emotional distress. 

Stay safe, stay informed, and protect your festive spirit from scammers.