As the year wraps up, your money is at risk more than ever. Scammers are relentless, watching for any opportunity to steal your hard-earned cash. Don’t fall victim—stay vigilant.
John Manyike, group head of financial education at Old Mutual, warns that people often become complacent about their financial security, especially with the widespread use of passwords and biometric authentication. “You still need to be alert to suspicious activity,” Manyike says. “If you think your accounts have been compromised, act immediately—contact your bank and block them.”
A recent case should serve as a brutal wake-up call. A well-known public figure had their bank accounts wiped out after their cell phone was stolen. At first, they thought losing their phone was just a stroke of bad luck. Two days later, they discovered their savings had been drained and credit cards maxed out to the tune of R500,000. “Crooks can bankrupt you within hours,” Manyike says.
The festive season is particularly dangerous. As people receive bonuses, spend on gifts, and relax, criminals ramp up their activities. “It’s when you’re relaxed that you’re most vulnerable,” Manyike warns.
With the festive season upon us, many special deals are circulating online. It’s crucial to double, no, triple-check the legitimacy of any website offering sales. I learned this lesson the hard way when I came across a shoe sale, entered my payment details, and completed the transaction, only to realise too late that the site was a scam. I lost my money, and understandably, the bank couldn’t refund me since I had voluntarily paid scammers without properly verifying the website's authenticity.
Manyike provides tips on how you can protect yourself:
1. Secure your PINs and passwords
Don’t use obvious numbers like your birthdate or anything easily connected to you. “If your birthday is June 15th and your PIN is 1506, you’re asking for trouble,” Manyike says. Never carry a list of PINs or passwords with you, and never share them by phone, email, or message, no matter who asks.
2. Cell phone security
Your phone is a gold mine of personal data. “People are too casual with their phones,” Manyike says. If your phone is stolen, immediately contact your bank to freeze your accounts, even if your phone feels secure. Report the loss to the South African Banking Risk Information Centre (SABRIC) to prevent identity theft.
3. Credit card precautions
If your credit card is lost or stolen, contact your bank immediately. To avoid complete devastation, set reasonable daily spending limits on your cards. You might also want to disable tap-and-pay features, which allow anyone to use your card for up to R500 without a PIN.
4. Stokvel safety
Stokvels are prime targets for criminals, especially at year-end when large cash withdrawals are made. Criminals often target these gatherings to rob members of their pooled funds. “Encourage stokvels to use electronic transfers to avoid armed robberies,” Manyike suggests.
5. Kidnapping syndicates
A horrifying new trend is the rise in kidnapping syndicates. Criminals abduct victims, force them to reveal their PINs, and drain their accounts before releasing them. This disturbing trend underscores the need for heightened vigilance, especially when you’re out driving alone.
The takeaway is clear: stay sharp. Scammers are out in full force, and complacency is a recipe for disaster.
* Maleke is the editor of Personal Finance.
PERSONAL FINANCE