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 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.
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.
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.
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.