Standard Bank Warns South Africans About Social Media and Mobile Banking Scams

South Africans have been urged to stay alert as fraudsters impersonate banks and banking officials on social media and through fake apps to gain unauthorized access to bank accounts.

Fraudsters Exploit Social Media and Fake Apps

Standard Bank has issued a strong warning about scammers using deceptive social media profiles and fraudulent apps to trick consumers and businesses. In a statement published on Tuesday (25 February), the bank flagged these scams as a growing concern.

Recently, a fake WhatsApp group linked to an investment app called SBG SI Trader falsely claimed to be associated with Standard Bank, SBG Securities, and SBG Securities Online Share Trading. The app also misrepresented the bank’s Financial Sector Conduct Authority (FSCA) operating license and an employee, David Hodnett, in an attempt to appear legitimate.

“We would like to alert you that this information is fraudulent. Please remain vigilant to avoid falling victim to phishing scams, cybercrime, or unauthorized access by fraudsters,” Standard Bank warned in an official statement. Customers were also urged to be cautious of any social media, email, or phone communication requesting personal banking details.

How Criminals Operate

Scammers often pretend to be bank representatives and use urgent-sounding messages to pressure victims into sharing sensitive information, such as:

• Digital banking login credentials
• PINs, passwords, or OTPs (one-time passwords)
• Authorization for fake transactions

These fraudsters may claim that the security of your account is at risk and encourage you to make a payment to protect your funds. However, this is a ploy to steal your banking details.

Banking Fraud on the Rise

Impersonation fraud is at an all-time high in South Africa. According to the Southern African Fraud Prevention Service (SAFPS), fraud cases have surged by 337% over the past year. SAFPS CEO Manie van Schalkwyk highlighted that criminals are increasingly opening accounts using stolen identities.

“Banking fraud made up 45% of reported fraud incidents last year, followed by the microfinance sector (19%) and the clothing retail sector (14%), showing how financial institutions and retailers are under pressure,” he said.

Another major risk comes from malicious software (malware), which fraudsters use to steal mobile banking usernames and passwords. A security report found that 77% of mobile banking apps have at least one security vulnerability that could expose users to fraud.

How to Protect Yourself

Standard Bank has provided several safety measures to help customers avoid falling victim to these scams:

• Verify authenticity: Always check the legitimacy of apps or communication claiming to be from a financial institution.
• Do not share confidential information: Never share credentials such as PINs, passwords, and OTPs with third parties.
• Report suspicious activity: If you suspect fraudulent activity, immediately report it to your bank and the relevant authorities.
• Use strong passwords: Ensure your online banking platforms are secured with strong, unique passwords.
• Enable two-factor authentication: Activate two-factor authentication (2FA) for an added layer of security.

Banking fraud is evolving, and South Africans must remain vigilant against cyber threats. Always confirm banking communication through official channels and avoid downloading apps or clicking links from unknown sources. By following Standard Bank’s security recommendations, you can reduce your risk of falling victim to scams.

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