By: Leon Jacobs
With Black Friday around the corner – a time when credit and account cards are in heavy use – consumers are urged to stay alert against the rise in fraudulent activities. The increase in the use of online platforms for shopping and managing bills, opens us up to more advanced types of fraudulent activity, so preventing and minimising the risk of financial fraud is important.
The solution is to take proactive measures to outsmart criminals and protect your hard-earned money. Taking these security measures to heart will protect against fraudsters while empowering you with practical fraud preventative knowledge for safe usage.
What is credit fraud?
Credit fraud is the illegal and criminal use of another person’s identity and credentials to access/borrow money or use their credit/account cards.
The result of credit fraud is debt in your name made through fraudulent purchases. This may affect your future possibilities when applying for credit by causing your credit score to dip. To avoid this, educate yourself on the types of credit fraud and what you can do to prevent them.
Types of credit fraud
Phishing scams
Phishing occurs when fraudsters attempt to get your sensitive personal information to transfer or access money and credit. These scams can be incredibly detailed and easy to believe. Be wary of phishing and vishing attempts through email and phone calls where fraudsters claim to be a long-lost family member, a new love interest, a bank official, a fictional charity, or a false debt collector stating that a deceased family member has outstanding debt.
Fraudsters are creative and will make use of any public personal information to target you. You should never divulge personal information online, via WhatsApp messages, or on a call without security checks.
Counterfeit credit or account cards
Another type of credit fraud is criminals making counterfeit cards, where your card has been swapped out or intercepted and counterfeits are made. This is done by taking the information on the magnetic strip to create a fake card.
Identity theft
Your personal information can be stolen and used to commit credit fraud through stolen cards, driver’s license, account numbers, usernames, and passwords. These are accessed through non-shredded documents or phishing scams. Your stolen information can be used to set up bank accounts, bill payments, and make online transactions.
How to identify credit fraud
When it comes to your finances, always be vigilant and take note of every transaction online and offline. Check for unauthorised or unknown transactions on your statements and query them.
Not receiving an issued card timeously could mean that someone has intercepted your card to make counterfeit copies.
How to avoid credit fraud
· Review and assess your monthly account statements thoroughly to keep an eye on transactions.
· Make sure you’re transacting on secure websites when using your card.
· Check your browser’s navigation bar. Secure and legitimate websites start with https://
· Ensure social media sites you engage with are Meta verified (blue verification badge)
· Always check that you’ve received your card back after making a purchase.
· Do not disclose the following to anyone: your passwords, PINs, OTPs, or CVVs (the three- or four-digit number, usually located on the signature panel on the back of your cards).
· Report lost or stolen cards immediately.
· Keep transaction slips to check against your statements.
· When transacting at an ATM, keep an eye on the card slot to make sure your card is not skimmed or replaced.
You should not be asked to deposit your credit application.
If you encounter any of the following issues, report them immediately:
- A lost or stolen card
- Receiving a transaction notification without making a purchase
- Receiving an OTP without conducting a transaction
What to do if you’re a victim of credit fraud
- The first step is to contact your card issuer. If you suspect illegal activity query the transaction and your issuer can look further into the matter.
- If an investigation is required, your card will need to be frozen.
- Report the activity to local authorities, for example, SAFPS (Southern African Fraud Prevention Service) or Whistle Blowers (Pty) Ltd.
As an extra precautionary step, take additional action to secure your credit by adding a fraud alert to authenticate your identity or a security freeze to your credit file.
Protect yourself from possible credit fraud attempts by staying vigilant and aware when making transactions.
Being vigilant and adopting simple preventive measures goes beyond protecting money—it helps maintain trust in the systems we depend on every day. By staying secure, consumers can fully enjoy the convenience of modern transactions without sacrificing safety.
* Jacobs is the chief information officer (CIO) at RCS.
PERSONAL FINANCE