Nedbank Sounds Alarm on WhatsApp Scams Amid Major Restructuring Plans

In an urgent alert, Nedbank has cautioned South Africans to remain vigilant against a surge of sophisticated WhatsApp-based investment scams. These scams, often advertised on social media, falsely promise high returns and are tricking individuals into compromising their banking details.

The bank revealed that scammers are using convincing fake adverts that mimic reputable financial institutions. Victims are typically lured into opening a WhatsApp chat or clicking a suspicious link, which may lead to downloading harmful remote access tools. From there, they’re pressured into revealing sensitive information like their Nedbank ID login or card details — sometimes even transferring money directly to scammers.

To help customers avoid falling into these traps, Nedbank shared practical advice:

• Only invest through FSCA-registered institutions.

• Never share your Nedbank login or card details with anyone.

• Beware of ‘too-good-to-be-true’ investment offers.

• Avoid downloading software from untrusted sources.

• Engage only through official Nedbank channels.

• Report suspicious activity immediately to 0800 110 929.

This scam warning mirrors similar alerts from Standard Bank, which recently exposed fraudulent WhatsApp groups posing as official recruitment or investment forums. With job scams now joining the wave of financial frauds, these warnings come as economic pressures — including high unemployment and rising living costs — make South Africans increasingly vulnerable.

A Bank in Transition: Nedbank’s Strategic Shake-Up

This renewed focus on customer protection comes as Nedbank undergoes a major internal transformation. From July 2025, the bank will restructure its business units to enhance service delivery and improve client experience.

The restructuring will see:

• The formation of Personal and Private Banking (PPB) for individual clients, ranging from youth to high-net-worth individuals.

• The creation of Business and Commercial Banking (BCB) to support SMEs and mid-sized corporate clients.

• The integration of Nedbank Insurance and Wealth Management into PPB to offer more tailored financial solutions.

• Asset Management will shift under Corporate Investment Banking, focusing on a more client-centric strategy.

According to Nedbank CEO Jason Quinn, this realignment is about creating focused, agile teams that can better serve client needs.

“For clients, this reorganisation is a transformative leap. We’re building more integrated banking experiences that align with how people and businesses operate today,” said Quinn.

Strong Financial Performance in 2024

The restructuring follows a solid financial year for the bank. Nedbank reported:

• Headline earnings of R16.9 billion, up 8% year-on-year.

• Return on equity (ROE) of 15.8%.

• Basic earnings per share up 11% to 3,610 cents.

• A 10% increase in full-year dividends to 2,075 cents per share.

Driving this growth were improved non-interest revenue, disciplined cost control, and lower credit impairments.

Stay Informed, Stay Safe

As Nedbank positions itself for the future with sharper service offerings, its warning underscores a key message: customers must stay alert. In an age of digital convenience, awareness and skepticism are your best defences against fraud.

If you come across a suspicious WhatsApp message or social media advert, don’t click — verify with your bank directly.

{Source: BusinessTech}

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