COMMOM FRAUD SCAMS & HOW TO PREVENT THEM

The proliferation of technology, particularly in the banking sector, has made life more convenient thanks to innovations such as ATMs and online banking and shopping, but has also created new opportunities for fraudsters.

All fraud is committed with malicious intent, and SAFPS attempts to curb the success of these attempts through use of our extensive Fraud Prevention Databases, collaboration with our Members and Protective Registration for consumers.

Read our guide to the most common types of fraud:

Application Fraud

Application fraud occurs when an application for credit, loan or service is completed with or by:

  • Intentionally providing incorrect or fictitious information.
  • Fabricated documentation.
  • The applicant impersonating or assuming the identity of an actual person.

This type of fraud may cause financial and/or reputational loss to the impacted parties.

Identity Theft

This is fraud that occurs when a person deliberately uses:

  • The name & personal information of an individual or juristic person to:
    • Gain financial benefits or
    • Cause financial loss to the impacted party

This type of fraud may cause financial and/or reputational loss to the impacted parties, which may continue unchecked for long periods of time.

White Collar Crime

What is white collar crime? These are generally non-violent, financially motivated acts committed by professionals or organisations in formal business and/or corporate environments. They are often linked to organised crime and money-laundering syndicates.

White collar crimes are difficult to track and prove as the criminals take advantage of their trusted or privileged positions within organisations.

SAFPS gathers critical incident and fraud data to derive useful information on syndicate movements and activities, and facilitate arrests and prosecutions.

Cyber Fraud and Cyber Crime

This typically involves hackers clandestinely installing spyware onto digital devices to extract personal information, login details and passwords. Common cyber crime scams include phishing (whereby supposedly genuine emails request and harvest identity information) and website cloning (or affiliate fraud) whereby consumers are duped into entering their bank card details onto fake (but apparently real) online shopping websites.

Scams

Email scams are the most prevalent, especially advanced fee scams (commonly known as 419 scams). They involve consumers being enticed by:

  • Emotional emails or phone calls requesting assistance in a dire situation e.g. a child in hospital.
  • Emails or telephone calls advising them that they have won a competition or lottery and that they need to make a payment to complete some form of administration before the funds can be paid out to them.

Unsuspecting consumers either make the deposits and/or provide their personal details and banking information to the fraudster who then uses it to commit more extensive crimes.

Consumer Fraud

This type of fraud involves a business defrauding an individual or another juristic person:

  • The fraudsters benefit by deceiving the consumer through unfair, illegitimate, or misleading business practices.
  • This results in the consumer suffering financial or personal loss.

Emergency Hotline: 0800 029 999

WhatsApp Support Line: 0600-123456

ARE YOU A VICTIM
OF FRAUD?

Call SAFPS now on:
011 867 2234

Protect yourself against future fraud & identity theft with Protective Registration

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- Identity theft is increasing

Conduct a credit check on your name at least once a year.

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