‘HAVE YOU BEEN THE VICTIM OF AN EFT PAYMENT SCAM? – HERE’S WHAT THE COURTS HAVE TO SAY…’

In 2018, Northcliff Nissan (trading as Intengo) sold two vehicles to Hyundai Louis Trichardt. The agreement included invoices emailed to Hyundai containing the seller’s bank details. Before Hyundai could process the EFT payments, criminals intercepted the email and altered the banking information. 

Believing it was paying Intengo, Hyundai transferred the full purchase price into the fraudster’s account. When Intengo later demanded payment, Hyundai argued that it had fulfilled its obligation, having already paid the amount via EFT. The High Court held in favour of Intengo. Hyundai appealed to the Supreme Court of Appeal. 

What the SCA Decided 

The SCA dismissed Hyundai’s appeal and made the following crucial points: 
* It is the payer’s duty to ensure that payment is made into the correct bank account. 
* Using electronic systems such as email and EFT does not shift the risk to the recipient unless clearly agreed otherwise. 
* A debtor (the payer) must “seek out the creditor” and verify the accuracy of payment details. 

In its judgment, the SCA also referred to a 2022 case involving ENS, where a client sought to hold the firm liable after falling victim to an email hack. The SCA overturned the earlier ruling, confirming that creditors cannot be expected to guarantee protection against every cyber risk when the payer has the ability and responsibility to verify payment details. 

Key Takeaways  
This ruling carries a powerful message for consumers, corporates and the broader public— especially during periods like the festive season, where fraud is at its peak:

1.  The Risk Lies with the Payer 
   If you pay into the wrong account, even due to fraud, you may still owe the original payee. A proof of payment alone does not absolve you. 
   

2. Verification Is Non-Negotiable
   Always confirm bank details directly with the recipient using a trusted and independent channel (e.g., a phone call to a known number, not one in the email). 

3. Email Is Vulnerable to Interception
   Invoice tampering is one of the most common forms of business email compromise. Treat all emailed banking details with suspicion unless verified. 

4. Cybercrime Doesn’t Take Holidays Off 
   Fraudsters intensify their efforts during busy seasons, relying on urgency and distraction. Take extra care during the festive period. 
   
5. Businesses and Consumers Must Protect Themselves 
   Simple safeguards can prevent devastating financial losses:
   • Verify beneficiary details before every EFT.
   • Cross-check details via a known contact number.
   • Be alert to last-minute changes or urgent payment demands.
   • Use secure portals or encrypted channels rather than email where possible.
   • Avoid sending banking details in editable formats.
   • Regularly update cybersecurity controls and staff awareness. 
     
     

Stay Vigilant This Holiday Season 

Electronic fund transfers are convenient, but they are also prime targets for criminals. The courts have made it clear: payment into the wrong account, even though fraud, does not relieve you of your duty to pay the intended creditor. 

As we approach the festive period, remember: 
Verify before you pay. Pause before you click.Your Safety Starts with You 

This court ruling is an important reminder for individuals and businesses alike.  

Therefore - be vigilant, always exercise caution and take care to ensure that when required to make payments electronically you verify the details of the beneficiaries as well as bank accounts to which payments are to be made as payment to an incorrect account will not absolve you from liability. 

Should you suspect fraud or require guidance on secure payments, contact the Bank immediately for advice and support.