Latest news with #SARB
The Citizen
a day ago
- Business
- The Citizen
Rising scam alert: Fake FICA notices and extortion tactics target bank customers
There has been a significant rise in extortion, email, and text scams (phishing) targeting banking customers in recent months. Standard Bank's Head of Fraud Risk Management, Adv. Athaly Khan, warns against the growing sophistication of these schemes, with fraudsters continually adapting their tactics to deceive individuals into sharing sensitive information. In some cases, victims are even coerced into transferring money into the fraudsters' accounts. Standard Bank offered these general tips to avoid falling victim to fraudsters: Verify authenticity: Always verify the authenticity of any app or communication claiming to be from a financial institution. Always verify the authenticity of any app or communication claiming to be from a financial institution. Do not share confidential information: Never share credentials such as PINs, passwords and one-time passwords (OTPs) with any third-party. Never share credentials such as PINs, passwords and one-time passwords (OTPs) with any third-party. Report suspicious activity: If you encounter any suspicious activity or believe you have been targeted by a scam, report it immediately to your financial institution and the relevant authorities. If you encounter any suspicious activity or believe you have been targeted by a scam, report it immediately to your financial institution and the relevant authorities. Use strong passwords: Ensure that you use strong and unique passwords for your online or digital banking platforms. Ensure that you use strong and unique passwords for your online or digital banking platforms. Enable two-factor authentication: Where possible, enable two-factor authentication for an added layer of security. Here are common tactics used by scammers in recent months and ways to protect yourself: Fake non-compliance notifications Fraudsters are exploiting the bank's need for compliance with the Financial Intelligence Centre Act (FICA). They are purporting to be the bank, sending customer's emails and SMSs, claiming that their accounts are not FICA compliant. 'Their emails and SMSs include malicious links, urging customers to click on or risk their account being blocked or closed,' Khan explained. 'Upon clicking on the link, customers may be routed to a fake login site or prompted to capture sensitive information such as their card number, expiry date, customer verification value (CVV), or One-Time-Pin (OTP). In some instances, the link may cause disruption on the customer's device, giving the fraudsters remote access and total control.' Extortion Scams Extortion scams often involve threats to harm individuals, expose sensitive personal information about them or tarnish their reputations unless a ransom is paid. 'We're increasingly seeing fraudsters impersonate respected bodies such as the South African Reserve Bank (SARB), SARS or the SAPS,' Khan explained. 'They claim to be investigating customers for serious offences, anything from fraud to money-laundering. In some schemes, victims are given a fake account number and instructed to transfer all their funds for the duration of the investigation. In others, the criminals allege they possess compromising material such as private photographs, financial records or other personal details, and demand payment in exchange for keeping it confidential.' Khan further said that these fraudsters go to extreme lengths to convince the targeted individual that they are from legitimate authorities. This includes telephone calls, emails, documents and they sometimes suggest physical meetings. 'The internet has become a prime hunting ground for fraudsters. Customers need to be wary of information they share on social media platforms as cybercriminals are becoming increasingly sophisticated in their orchestration,' Khan added. What to do if you are targeted: Stay calm, do not panic. Fraudsters often use fear to manipulate victims. Take time to verify the legitimacy of the claims. Never send money or click on a link in response to unsolicited messages. Legitimate organisations, including banks, will never ask for payments or sensitive information this way. If you believe your bank account may be compromised, contact your bank's fraud department right away. They can help you secure your account and investigate the issue. Regularly review your bank and credit card statements and report any suspicious activity. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Reuters
2 days ago
- Business
- Reuters
South African rand falls back after strong gains
JOHANNESBURG, May 30 (Reuters) - The South African rand retreated on Friday following strong recent gains, but analysts said the outlook for the currency remained positive. The rand traded at 17.94 against the dollar at 1340 GMT, about 0.7% weaker than Thursday's closing level. The currency was hurt by dollar strength , as well as investor uncertainty over U.S. President Donald Trump's tariff war. "Local factors remain positive for the rand, but concerns over the U.S. fiscal debt, tariff uncertainty, and trade war fears are likely to see some consolidation between 17.70 and 18.00 (to the dollar) in the short term," Andre Cilliers, currency strategist at TreasuryONE, said in a research note. The rand advanced on Thursday, buttressed by the central bank stressing its strong preference for a lower inflation target at a monetary policy announcement. The South African Reserve Bank (SARB) presented detailed modelling of the impact of a 3% inflation target, compared to the 4.5% level it aims for at the midpoint of its current 3% to 6% target range. The SARB, which resumed interest rate cuts on Thursday after a pause in March, added that its Monetary Policy Committee felt a 3% target was "more attractive" and said it would continue to consider scenarios based on that target at future rate meetings. "Investors focused on the implications of a lower target, namely lower inflation, reduced interest rates, bond market inflows, and stronger long-term growth, which further support the rand," ETM Analytics said. On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab last traded down 0.7%. The benchmark 2035 government bond was marginally stronger, as the yield fell 1.5 basis points to 10.155%.
Business Recorder
2 days ago
- Business
- Business Recorder
South African rand falls back after strong gains
JOHANNESBURG: The South African rand retreated on Friday following strong recent gains, but analysts said the outlook for the currency remained positive. The rand traded at 17.94 against the dollar at 1340 GMT, about 0.7% weaker than Thursday's closing level. The currency was hurt by dollar strength, as well as investor uncertainty over U.S. President Donald Trump's tariff war. 'Local factors remain positive for the rand, but concerns over the U.S. fiscal debt, tariff uncertainty, and trade war fears are likely to see some consolidation between 17.70 and 18.00 (to the dollar) in the short term,' Andre Cilliers, currency strategist at TreasuryONE, said in a research note. The rand advanced on Thursday, buttressed by the central bank stressing its strong preference for a lower inflation target at a monetary policy announcement. The South African Reserve Bank (SARB) presented detailed modelling of the impact of a 3% inflation target, compared to the 4.5% level it aims for at the midpoint of its current 3% to 6% target range. The SARB, which resumed interest rate cuts on Thursday after a pause in March, added that its Monetary Policy Committee felt a 3% target was 'more attractive' and said it would continue to consider scenarios based on that target at future rate meetings. 'Investors focused on the implications of a lower target, namely lower inflation, reduced interest rates, bond market inflows, and stronger long-term growth, which further support the rand,' ETM Analytics said. On the Johannesburg Stock Exchange, the Top-40 index last traded down 0.7%. The benchmark 2035 government bond was marginally stronger, as the yield fell 1.5 basis points to 10.155%.
Coin Geek
2 days ago
- Business
- Coin Geek
South Africa: Digital assets not subject to forex controls
Getting your Trinity Audio player ready... Digital assets are not capital or currency and are not covered by South Africa's foreign exchange controls, a local court has ruled. The high-profile court case pitted Africa's largest lender, Standard Bank (NASDAQ: SBGOF), against the South African Reserve Bank (SARB) and a local firm, Leo Cash & Carry (LCC). The central bank had seized over $1 million held in a Standard Bank account by the firm, which had been declared insolvent. Standard had placed a hold over the funds as the client owed an overdraft facility extended years ago. However, the central bank declared the funds in the account as forfeited to the state as, before it collapsed, LCC had purchased $37 million worth of BTC and transferred it abroad without official authorization, breaching forex laws. Standard Bank's legal team argued that 'crypto' is neither currency nor legal tender in South Africa, so the Exchange Control Regulations didn't apply. In his ruling, Judge M.P Motha sided with Standard Bank, and according to him, 'The answer lies in one's interpretation of the word currency.' 'Cryptocurrency is not money. The construction that cryptocurrency is money, by looking at the definition of money which includes foreign currency, is strained and impractical,' the Pretoria High Court judge ruled. The judge further ruled that 'crypto' 'falls outside the ambit of capital.' The judgement means that any flow of digital assets outside South Africa does not fall within the scope of the country's 'austere exchange control framework – at least for now,' says the local division of American law firm Baker McKenzie in its analysis. Wiehann Olivier, the head of digital assets at consulting firm Forvis Mazars, concurs, noting that the ruling creates a loophole that allows unlimited external transfers of digital assets. 'Currently, you can externalize as much cryptocurrency without any limitation as imposed from the exchange control perspective,' he told local outlet Moneyweb. 'Regulators will act swiftly' The loophole creates an easy workaround for South Africans seeking to move their money offshore. It also plays into the narrative that global central banks have held for years: that digital assets are used to circumvent capital controls, making them susceptible to abuse and criminal use. Experts expect the South African Reserve Bank to act swiftly and fix the flaw in its system. 'Given the risk this presents to the exchange control system as a whole, such legislative action seems inevitable, and it is likely that the Exchange Control Regulations will be amended in short order,' Baker McKenzie says. Olivier believes that even the central bank wasn't aware of the grey area, otherwise it would have plugged the loophole. 'In the background, [SARB] will most likely be making amendments to the exchange control regulations going forward, probably in the next 12-18 months because of the significance of the fact that you can externalize so much money without oversight,' he stated. The primary factor that supported the ruling is that the SARB, like most other central banks, has clarified that digital assets are not legal currencies. Even in pro-crypto nations like Russia, digital asset payments remain prohibited. This oversight could prove costly for South Africa as residents could purchase digital assets en masse and use them to send money offshore unchecked. The need for digital asset regulations in South Africa South Africa has the continent's most advanced digital asset laws, which has allowed regulators to issue licenses to over 200 VASPs. However, the ruling has exposed some of the gaps that still exist. In his ruling, Judge Motha noted that at this point, regulators could no longer claim digital assets as a nascent sector as their defense. 'Cryptocurrency has been in existence for over 15 years, one cannot say SARB has been caught napping,' the judge noted. Desiree Reddy, the South African director at global law firm Norton Rose Fulbright, noted, 'The decision underscores the pressing need for legislative reform to provide clarity and certainty in this rapidly evolving area.' Watch: Tech redefines how things are done—Africa is here for it title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
News24
2 days ago
- Business
- News24
Reserve Bank trims interest rate amid global uncertainty and explores lower inflation target
The Central Bank reduced the repo rate by 25 basis points amid slowing inflation and a subdued global growth outlook. Governor Lesetja Kganyago confirmed ongoing work towards potentially lowering the inflation target. A lower inflation target could lead to lower interest rates over time, potentially benefiting borrowers and supporting economic growth and job creation. The SA Reserve Bank (SARB) has reduced its policy rate by 25 basis points, effective 30 May, in response to a complex mix of global economic uncertainty, subdued domestic growth, and well-contained inflation. The decision, announced by Governor Lesetja Kganyago following the monetary policy committee (MPC) meeting on Thursday, reflects both local and international headwinds, as well as a growing policy debate around lowering the inflation target. Five MPC members supported the 25 basis point cut, while one preferred a more aggressive 50 basis point reduction. The move brings the repo rate down in a context where global interest rates have generally softened, despite volatile financial markets and increased geopolitical risks. Kganyago noted that global economic conditions had remained volatile since the MPC's previous meeting. The US had introduced higher import tariffs only to partially reverse them, contributing to market fluctuations. US assets have sold off, while alternative safe havens, such as gold and the euro, have performed well. Lesetja Kganyago The Reserve Bank has revised its global growth forecast downwards, citing elevated uncertainty and higher trade barriers. Inflation prospects remain mixed. While tariffs and supply chain disruptions could push inflation up in some economies, other forces such as lower oil prices and subdued global demand could pull inflation down. The US Federal Reserve has left its rates unchanged, but other central banks, including the Bank of England and European Central Bank, have eased monetary policy. Domestic growth and inflation outlook At home, the SARB has lowered its GDP growth projection for this year to 1.2%, expecting a gradual rise to 1.8% by 2027. The first quarter's official growth data is still pending, but indicators from sectors such as mining and manufacturing have been weaker than expected, and unemployment has increased. Inflation, meanwhile, fell below 3% last month, driven largely by lower fuel costs. Core inflation, which excludes volatile items, was at the bottom end of the bank's target range. The central bank has also revised its inflation forecast downwards, supported by a stronger rand, lower oil prices and the cancellation of a previously expected VAT increase. Despite this benign inflation environment, the MPC assessed risks as balanced, citing possible currency volatility due to both global and local developments. The rand briefly touched multi-year lows against the US dollar last month but has since stabilised. Inflation target review underway In addition to the rate decision, Kganyago addressed ongoing work to review the country's inflation targeting framework. He said the Reserve Bank, together with the National Treasury, was considering whether SA should adopt a lower inflation target, possibly 3%, down from the current 3% to 6% band. 'Much of the heavy technical work has been done,' said Kganyago. 'We've benchmarked against both advanced and emerging economies. Many countries have revised their targets lower over time.' We are now assessing the transition, how to move from one target to another, over what period, and what support would be needed from other areas of economic policy. Lesetja Kganyago Kganyago cited international trends, noting that advanced economies typically target 2%, while the median inflation target among emerging markets is around 3%. He said that interest rates in countries with lower inflation targets are also generally lower. Responding to questions from journalists, Kganyago rejected the notion that lower inflation targets necessarily imply higher interest rates. 'That argument just baffles me,' he said. 'Countries with 2% inflation targets often have lower rates than we do.' If adopted, a lower inflation target could result in structurally lower interest rates over time, which would benefit borrowers. According to the SARB's modelling, in a 3% inflation scenario, the policy rate would fall to just under 6%, compared to remaining above 7% under the current framework. 'We would be a low inflation, low interest rate country,' Kganyago said. However, the governor acknowledged that the transition would require coordination beyond monetary policy. Administered price setters, for example, may need to adjust their pricing behaviour in line with a lower inflation environment. A move to lower inflation targeting could also support longer-term growth and job creation. 'You end up with higher growth over the forecast horizon,' said Kganyago. 'A growing economy should also create jobs.'
