Financial fraud has shifted from technical exploits to social engineering, highlighting the importance of awareness and caution, says Iain Orpen, head of fraud prevention and detection at Capitec, in the fourth episode of Bank on it — watch the video above.
Bank on it is a video and podcast series launched by Capitec in partnership with Business Day and hosted by Koshiek Karan, a former investment banker turned financial education influencer and fintech entrepreneur, known for demystifying finance in an entertaining, relatable way through his platform Banker X.
Historically, fraud prevention has focused on securing banking channels and devices with measures like encryption and SMS PINs.
However, as these systems have become more secure, criminals have shifted their focus to social scams, exploiting human emotions such as fear and greed to trick people into willingly giving up their money or personal information. These emotionally charged scams create a sense of urgency or threat, causing victims to act irrationally.
SA’s most common scams
The most common types of scams prevalent in SA currently include investment scams promising unrealistic returns on crypto, gold or stock markets; scams luring job seekers into employment by getting them to perform small tasks for a nominal fee before pulling them into a larger, fraudulent operation; and email intercept fraud where scammers hack into email accounts to send fraudulent invoices or change banking details for large payments.
Other common scams involve tricking people into downloading malicious apps and romance scams.
SA is a hotbed for financial crime due to a combination of factors, including high economic inequality which creates desperation and a willingness to take risks for financial gain; low levels of financial literacy which makes it easier for people to fall for sophisticated scams; and widespread smart device ownership.
Unlike global syndicates that focus on high-value, long-term scams, local scams are often about volume and speed and may even target social grant recipients.
For banks, fraud is a shared challenge. Banks collaborate through various organisations to share data and intelligence including working with law enforcement to disrupt criminal syndicates.
While frustrating for customers, banks intentionally slow down high-risk transactions to give clients time to think and prevent fraud.
To protect yourself from fraud, don’t overshare information online, be mindful of what you post on social media, and don’t accept friend requests from people you don’t know.
When you receive an unsolicited email, SMS, or call, especially if it involves money, assume it’s fraudulent until proven otherwise. If you receive a request to change banking details or make a payment, call the company or person you know on a trusted number to verify the request. Don’t use the contact information provided in the suspicious message. If a request feels fishy, speak to someone you trust and take a moment to pause and think before acting.
Most importantly, stay vigilant, trust your instincts and always verify before you click, pay or share.
For more tips on how to avoid financial fraud, watch the latest episode of Bank on it:
About ‘Bank on it’
As a leading financial institution, Capitec is committed to empowering individuals and businesses. Through its Bank on it leadership series of videos and vodcast, the bank provides authentic conversations and actionable insights that help entrepreneurs and business leaders navigate the complexities of today’s market, reaffirming its commitment to financial inclusion and innovation.
New episodes of Bank on it premiere every alternate week on Business Day TV (DStv Channel 412). You can also find them on the Business Day website and Business Day TV YouTube channel and Capitec’s YouTube channel and the bank’s website.
Follow the conversation and share your thoughts on social media using the hashtag #BankOnIt, and by following Capitec on Facebook, Instagram, X and LinkedIn.
This article was sponsored by Capitec.
