Business
Discovery Bank Warns of New Police Scam Targeting South Africans
Discovery Bank has issued an urgent warning to its customers about a new and sophisticated scam involving criminals posing as police detectives. The fraudsters pressure victims into transferring funds under the guise of assisting with a fake investigation. This alarming tactic was highlighted in a fraud alert issued by the bank on Friday, 14 March 2025.
How the Scam Works
According to Discovery Bank, the scam begins with a phone call from someone claiming to be a police detective. The caller informs the victim that their ID or cellphone number has been linked to fraudulent activity, such as the opening of fake accounts in their name. To escalate the situation, the fraudster may involve a fake senior official who pressures the victim to transfer money for the “investigation,” promising it will be returned later.
Discovery Bank emphasized that the South African Police Service (SAPS) would never ask for money to investigate or drop a case. The bank also noted that these calls often come from private numbers, which is unusual for legitimate law enforcement communications.
What You Should Do
Discovery Bank has urged customers to remain vigilant and never transfer money or share bank details over the phone, no matter who the caller claims to be. If you receive a call from someone claiming to be a police officer, follow these steps to verify their identity:
- Ask for their name, station, and case number.
- Look up the contact details of the police station independently.
- Call the station directly to confirm the details provided.
The bank also reminded customers that legitimate law enforcement officials will never pressure individuals into making financial transactions.
A Growing Trend of Financial Fraud
This police impersonation scam is just one of several fraudulent tactics recently flagged by South Africa’s major banks. Standard Bank, for instance, has warned customers about a fraudulent WhatsApp group claiming affiliation with an investment app called SBG SI Trader. The app falsely asserts connections with Standard Bank and other platforms, such as SBG Securities Online Share Trading.
In a statement, Standard Bank urged customers to remain vigilant against phishing scams, cybercrime, and unauthorized access by fraudsters. The bank advised against sharing personal information via social media, email, or phone communications.
Capitec Bank has also highlighted the rise in authorised push payment fraud, where victims are deceived into authorising payments to criminals. Cybercriminals often impersonate trusted organisations, such as banks or service providers, to persuade individuals to transfer funds to fraudulent accounts. Capitec stressed that these scams are causing significant financial losses across the country.
Rising Fraud Statistics in South Africa
The SAPS’ latest quarterly crime statistics reveal a worrying increase in reported fraud cases. Commercial crimes, including fraud, forgery, and uttering (the passing off of forged documents), rose by 8.9% in the last three months of 2024. During this period, the police registered 36,446 cases, averaging 405 cases per day.
The South African Banking Risk Information Centre (SABRIC) has also raised concerns about the surge in financial crime. Its latest annual report shows that digital fraud, card fraud, and contact crimes have resulted in losses of nearly R3.3 billion. Cybercrime, in particular, has seen a dramatic increase, with digital banking fraud surging by 45% and related financial losses rising by 47%.
Fraud involving banking apps has become the most significant threat, accounting for 60% of all digital banking crimes and increasing by 89% year-on-year.
Discovery Bank’s warning about the new police scam underscores the importance of staying alert to fraudulent activities. As financial crimes become increasingly sophisticated, it is crucial for individuals to verify the identity of anyone requesting sensitive information or financial transactions. By following the bank’s advice and remaining cautious, South Africans can protect themselves from falling victim to these scams and contribute to the fight against financial crime.
Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram
For more News in Johannesburg, visit joburgetc.com
