By: Bianke Neethling – Daily Investor

Standard Bank warned South Africans to remain alert as the local banking industry had seen an increase in clients duped by fraudsters posing as bank officials, tax officials, or investment companies.

In a press statement released Tuesday, 6 August, Standard Bank said it has invested in new technology to caution and protect vulnerable consumers.

The bank referred to data from the South African Banking Risk Information Centre (Sabric), which shows that ‘vishing’ has become the biggest contributor to application, digital banking and card-related fraud.

‘Vishing’ is where scammers use phone calls and social engineering skills to manipulate victims into disclosing confidential information.

This is similar to phishing scams, which trick people into clicking on links in texts and emails.

However, vishing calls trick people into sharing sensitive banking information or taking actions that compromise the security of their bank accounts. 

Standard Bank warned that scammers are targeting older people who are approaching retirement or have recently received their cash payouts. 

These scammers propose ‘high-return’ investment opportunities and persuade victims to transfer funds into fictitious investment accounts with false promises. 

Fraudsters may also attempt to create panic by falsely claiming that the victim’s bank account is at risk, urging them to move their money to a different account for ‘safekeeping’. 

Standard Bank’s head of digital and eCommerce, Dr Belinda Rathogwa, encouraged everyone to remain vigilant and avoid falling for such scams. 

“The bank will never call to ask you to move your money to an account that you do not know about,” she said. 

“If you are going to invest your hard-earned money, verify the details of the investment company you are dealing with. Check that they are registered with the Financial Services Conduct Authority (FSCA).”

She warned that these scammers encourage victims not to share details about the fraudulent transaction with their banks or loved ones, making it difficult to detect the fraud early. 

This social engineering tactic leaves consumers little recourse, meaning many cannot recover all of their lost funds, and most don’t recover any of their money, even with their bank’s assistance.

Rathogwa further explained that fraudsters have turned to social engineering because of banks’ risk controls to prevent unauthorised access to accounts. They, therefore, trick clients in other ways. 

To counter this rising threat, Standard Bank has launched a security feature on its Mobile Banking app designed to alert clients to potential vishing threats. 

Once activated and consented to by the client, the feature notifies users of suspicious calls.

“Our data shows that a growing number of older clients make use of our App. Any additional security features on the app can, therefore, play a big role in protecting them,” Rathogwa said.

She gave South Africans several tips on how to keep their money safe from scammers and fraudsters –

Be careful about unsolicited calls, emails or messages asking for personal information.

If you receive a call from someone claiming to be from your bank’s fraud department, remember that the bank will never ask you to share your personal information over the phone. If the call sounds suspicious, hang up and call your bank’s fraud line.

Never share your one-time PIN (OTP) with anyone. Your bank will never ask for your digital banking credentials, including OTPs, passwords or PINs, over the phone.

Avoid connecting to public WiFi networks to do your banking. Standard Bank clients can use the Mobile Banking App even when they don’t have mobile data.

For added security, use your fingerprint or facial recognition to secure your device and to sign in to your banking app.

Rathogwa warned South Africans to remain alert and on the lookout for fraudsters and scammers who may be after their money.