Latest news with #YimaAnti-ScamsWarRoom
The South African
19-05-2025
- Business
- The South African
Fraudsters in South Africa prevented from stealing THIS much
Fraudsters in South Africa were busy in 2024. However, their efforts were repeatedly foiled by the Southern African Fraud Prevention Service (SAFPS). Speaking at their annual summit last week, the SAFPS says it prevented fraudsters from stealing R5 billion last year. And this brings the total of foiled financial crimes to R30 billion for the last decade. Manie van Schalkwyk, CEO for SAFPS believes more collaboration between organisations is needed to combat fraudsters in South Africa. He also highlights, the 'hotspots' for fraudsters in South Africa. Namely: Gauteng, KwaZulu-Natal and the Western Cape, which suffer from the highest instances of crime, otherwise known as the 'Fraud Triangle' of South Africa. Nevertheless, the good news is Gauteng showed a modest 5% decrease in fraud incidents compared to 2023. This is, in part, attributed to the Yima Anti-Scams WarRoom, which acts as a one-stop portal for financial service providers to report scam incidents or suspicious activities. Interestingly, more fraudsters in South Africa are impersonating their victims to gain access to accounts. This technique is up by 16%, says SAFPS, to 38% in 2024. Fascinatingly, men appear to be more popular targets, perhaps owing to the fact they're less fastidious about their finances and personal security than women. Worryingly, fraudsters in South Africa have a new easy target, retail card accounts. Image: File Van Schalkwyk also highlighted new scam trends for fraudsters in South Africa. One such practice is opening a bank account solely to move stolen money – 24% up in 2024. Alternatively, 'money mule' accounts – either willing or unwilling accomplice accounts – increased to 33%. Interestingly, retail card accounts – like supermarket rewards programmes – saw more than a 150% increase in crime. This is presumably because these accounts have less sophisticated fraud prevention technology/alerts. Criminals buy on credit and leave their victims with the bill, with debt often going undetected for weeks/months. Through impersonation, and willing accomplices in store, fraudsters may open/gain access to a consumer account with no intent to ever repay it. Nevertheless, despite these alarming tactics, SAFPS says it is winning the war. In 2024 alone, it saved R5 billion. And as this is less than the R7 billion it saved in 2023. Therefore, crime figures appear to be trending in the right direction. It fielded more than 72 000 calls to assist potential fraud victims last year. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Daily Maverick
15-05-2025
- Business
- Daily Maverick
Fraud prevention service saves clients more than R5-billion as scams soar in 2024
On Thursday, 15 May 2025, the Southern African Fraud Prevention Service (SAFPS) kicked off its annual summit with a bang — or rather, a barrage of numbers that would make any fraudster's palms sweat. Held both in person at Nedbank's Rivonia Campus in Johannesburg and online, the summit unveiled the 2024 SAFPS Annual Report, presented by Roy Retief, Head of Operations at the Southern African Fraud Prevention Service. Although SAFPS managed to save its members (companies from the financial services and retail sectors) more than R5-billion last year and a whopping R30-billion over the past decade, fraud is not taking a holiday any time soon. 'Fraud has evolved and is becoming more sophisticated, more targeted and more personal,' said SAFPS CEO Manie van Schalkwyk. Van Schalkwyk further said there was a critical need for collaboration among organisations to combat rising fraud and scams effectively. Key initiatives like the Yima Anti-Scams WarRoom, which served as a one-stop portal where users could report scam incidents or suspicious activities, demonstrated SAFPS's commitment to leveraging shared intelligence and partnerships. Fraud's favourite hangouts When it comes to fraud hotspots, Gauteng, KwaZulu-Natal and the Western Cape are still the usual suspects — think of them as the 'Fraud Triangle' of South Africa. Gauteng showed a modest 5% dip in fraud incidents compared to 2023, so the scammers there either took a short holiday or just got smarter about hiding. Impersonation spike Victims of impersonation — where your personal information is used fraudulently — account for up to 16% of SAFPS listings, and this category surged by 38% in 2024. Interestingly, men appear to be leading the pack as prime targets, showing that fraudsters aren't picky but might have a particular eye on the fellas. Fraud's many faces Fraudsters are getting creative, with scammers opening bank accounts solely to move stolen money — this sneaky misuse of accounts jumped 24%. Meanwhile, the number of money mules — those unwitting or willing accomplices who let criminals use their accounts — have dropped. 'We saw money mules dropping within the misuse of accounts by 33%, and typically… that is where account holders are making their accounts available to criminals willingly, sometimes not so willingly,' Retief said. However, retail accounts, which only accounted for 0.3% of fraud incidents, were under siege, with abuse soaring 155% as criminals took over credit and left the victims with the bill. 'Typically, you'd find (retail fraud) would occur where a consumer opens an account with a retailer with no intent to repay that debt at all,' he said. Billions saved, more to protect Despite these alarming statistics, there's a silver lining. Over the past decade, the SAFPS database has prevented R30.63-billion in fraud losses. In 2024 alone, it saved R5.04-billion, following R6.9-billion saved in 2023, while fielding more than 72,000 calls and more than 50,000 emails to assist victims and members. Christo Otto, the chairperson of the SAFPS board, commended the board's steadfast support and the SAFPS team's ongoing commitment to combating financial crime in 2024. 'The SAFPS board must be commended for its determination in supporting the ongoing work of the SAFPS in its fraud prevention efforts for members and consumers at large,' he said. What this means for you Although fraud is evolving fast, there are practical steps you can take right now to protect yourself and your finances: Your identity is a hot commodity: Protect your personal information. Think twice before sharing your ID or banking details online or over the phone. Retailers are prime targets: Your shopping accounts, both online and offline, are at risk. Use strong, unique passwords and enable two-factor authentication where possible. Fraud prevention is a team effort: You can actively protect yourself by registering your accounts and promptly reporting any fraud attempts. Stay informed, stay safe: Keep up to date with alerts from SAFPS and your financial institutions to avoid falling victim. The summit made one thing clear: fraud is evolving, and the fight against it must evolve too. With protective registrations steadily increasing and billions already saved, there is genuine hope that South Africa's fraudsters might find their playground growing smaller. DM
