Scammers Use Fake VAT Hike Notices to Steal Your Money – South African Banks Warn

South African banks are warning the public about a dangerous phishing scam tied to the rumoured VAT increase. Criminals are using fake tax notices to trick people into handing over sensitive information, including bank details and one-time passwords (OTPs).

According to TymeBank’s head of operational risk and fraud, George Wandsella, this scam is currently spreading across South Africa. It targets not only banking clients but anyone who pays VAT on subscriptions—from mobile services and online shopping accounts to healthcare and entertainment platforms.

“Scammers are preying on the fear and confusion around a possible VAT increase,” Wandsella said. “They create urgency, hoping users will act before thinking.”

How the Scam Works

Fraudsters send out emails, SMSes, or create fake websites that resemble real ones. These messages often contain links urging users to:

• “See updated VAT fees”

• “Verify your account”

• “Avoid service disruption”

Clicking on these links can lead to phishing sites designed to steal your login details or banking credentials.

Wider Warning from Banks

TymeBank, Capitec, Standard Bank, and others are sounding the alarm. Discovery’s recent SpendTrend25 report reveals that 63% of South Africans have experienced or know someone who has experienced card fraud, while over 75% have received scam messages.

Capitec highlighted that authorised push payment (APP) fraud and advance fee scams are especially prevalent. In APP scams, victims unknowingly transfer money to criminals. In advance fee scams, fraudsters request money upfront for fake job offers, loans, or prize winnings.

Standard Bank also issued warnings about fake WhatsApp groups posing as part of its services, another tactic being used to lure victims.

How to Protect Yourself

All major South African banks advise the following security tips to protect against phishing and VAT-related scams:

• Never share personal info: Your bank will never ask for OTPs, PINs, or passwords via email, phone, or SMS.

• Use biometric login: Enable fingerprint or facial recognition on your banking apps.

• Watch for SIM swap fraud: Unexpected signal loss or SIM activity could indicate your number’s been compromised.

• Hang up on suspicious calls: Don’t trust the caller ID alone—fraudsters can spoof it. Always call your bank back on official numbers.

• Keep software updated: Regularly update your banking apps and device OS to stay ahead of security threats.

• Monitor accounts: Enable real-time alerts for unusual transactions.

• Avoid pressure tactics: Scammers often create urgency. Take a moment to verify the message before acting.

As criminals become more sophisticated, South Africans must stay informed and cautious. Scams like the VAT phishing attack show how easily misinformation can be used to manipulate people into compromising their finances.

Double-check emails, question urgent messages, and when in doubt, contact your bank directly through official channels. Don’t let fake VAT notices become a real financial disaster.