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Digital fraud red flags South Africans cannot afford to ignore
It starts the same way for many people. A message pops up. A tax refund you did not expect. A warning that legal action is imminent. A loan offer that sounds like a lifeline.
You hesitate. For a moment, it feels urgent.
You are not alone. A 2024 TransUnion survey found that around 60% of South African consumers reported being targeted by fraud. That is more than half the country receiving dodgy emails, suspicious texts, or scam calls.
The upside is this: most scams are not perfect. They leave clues. And if you know what to look for, you are already ahead.
The fake SARS panic
During the recent tax season, a scam email made the rounds claiming to be from SARS. It warned recipients about a so-called letter of demand, threatened court summons and blacklist action within 48 hours, and urged immediate attention.
On the surface, it looked official. But the cracks were obvious once you slowed down.
There was poor grammar. The email address did not exist. The website listed was fake. Even the physical address turned out to be a random business park in Isando, not a SARS office.
This is where simple checks matter. A quick search on Google Maps can confirm whether an address is legitimate or just an empty lot. Fraudsters often rely on panic to stop you from verifying details.
Another common SARS-themed scam arrives via SMS, promising a tax refund that is often larger than what you actually paid. That should be your first warning. If it sounds too generous, it probably is.
Loan scams that leave you worse off
Loan scams are another major trap. They are especially dangerous in a country where many households are under financial pressure.
Elmi Kemp, Communications Lead at the South African Fraud Prevention Service, has warned that scammers lure victims by promising large loans, then demand upfront payments for administration, processing, or insurance fees.
Once you pay, they vanish.
Worse still, the application process is often used to harvest your personal data. Fraudsters can then use that information to open bank or store accounts or even take out loans in your name.
According to TransUnion’s findings, 5.1% of attempted digital account logins and 2.9% of account openings in South Africa were suspected to be fraudulent. Those numbers show how widespread identity-related fraud has become.
The red flag here is simple. Legitimate lenders do not ask for upfront fees before a loan is paid out.
When scammers pretend to be your friend
Not all fraud begins with threats or promises of money. Sometimes it starts with a friend request.
This tactic is known as social engineering. Scammers build fake online profiles, gain your trust, and slowly gather personal information.
Nazia Karrim, Head of Product Development at the South African Fraud Prevention Service, has cautioned that people are far more likely to trust someone they believe is a friend. Social media can become a goldmine for criminals if used carelessly, exposing details about your family, routines, and lifestyle.
Even something as harmless as an online quiz can become a data harvesting tool. Questions about your first pet or date of birth might seem fun, but those details are often used as security answers for banking and online accounts.
It is not about paranoia. It is about awareness.
The pattern behind most scams
Whether it is a fake tax email, a miracle loan offer, or a friendly online stranger, most digital fraud follows a familiar script:
• Urgency. You must act now.
• Emotion. Fear or excitement is triggered.
• Information. You are asked to click, share, or pay.
Fraudsters rely on speed. Your defence is pause.
In a country where digital banking and online services are part of everyday life, vigilance is no longer optional. It is part of being connected.
The red flags are there. Bad grammar. Suspicious domains. Offers that defy logic. Requests for upfront payment. Unexpected links.
The question is not whether you will encounter a scam. Statistics suggest you probably will. The real question is whether you will recognise it in time.
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Source: MyBroadband
Featured Image: The Finance Team
