How to spot a scam

Between data hacks and the rise of sophisticated fraud syndicates worldwide, online users should be hyper-alert for scams, warns Wojtek Wierzycki, Sygnia’s Head of Systems & Development.

The number of platforms encouraging you to bank, invest and otherwise transact online offers a smorgasbord of new opportunities for sophisticated syndicates looking to defraud you of your money.

The good news is that, whatever their guise, con artists generally use the same basic principles to run their scams, be it in-person or online. If you’re wise to their modus operandi, you should be able to spot a scam no matter what method is being used.

Here are a few sure-fire ways to spot a scam:

1. There’s a problem, a prize or an unbelievable reward/offer

Fraudsters will typically say there is a problem (e.g. you’re in trouble with the government, you owe someone money, there’s a virus on your computer, someone is hacking your bank account) or will tell you about an amazing prize/offer or reward to be had that you have to act on immediately to claim.

All of these scenarios are usually accompanied by an instruction to verify, confirm or disclose personal information in haste. Alternatively, you will have to pay a fee to proceed to the next step.

2. A heightened sense of urgency

Fraudsters want you to act before you have time to think, research or verify. If they have you on the phone, they may tell you not to hang up – so you can’t check out their story. They might threaten to arrest you, sue you or take away your driver’s or business license if you don’t “act now”. They may say your computer is about to be corrupted or that your bank account will be hacked if you don’t follow their instructions immediately.

3. You “must” pay a specific way

Fraudsters often insist that you pay or transact in a particular way –sending money via a specific money transfer service or depositing money via a link they provide. Again, they will try to panic you so you don’t have the time or forethought to check the credibility of the recipient of the funds.

Being told to do any of the below in haste is always a red flag:

• Transfer money quickly;

• Provide passwords, PINs or one-time passwords (OTPs);

• Pay in an unusual way – for example, with iTunes vouchers or through a transfer service like MoneyGram or Western Union;

• Provide any kind of personal information, such as your ID number.

4. The source seems dodgy

Many people are caught out by fraudsters posing as bank officials/financial services providers, government officials or other service providers (such as medical aid, an electricity/telephone/internet company or the SA Revenue Services). They may also make up names that sound official or pretend to be a charity or non-profit organisation. Or it may come from someone you know…

Remember: Fraudsters will go to great lengths to make the source seem legitimate, including using technology to change their phone number to appear as a legitimate company on your caller ID, or creating a website and/or email address similar to that of a legitimate company. They may even hack your contacts and use these to gain your trust by approaching you as “someone you know”.

It’s easy to be scammed like this, which is why it is important to be hyper-vigilant and check the source of any and all communication related to your online finances (see 15 extra ways to safeguard yourself against scams for more tips).

5. The content seems sketchy

Always read and consider the contents of any email, text and/or messaging conversations. Consider it a red flag if the communication:

• Contains spelling and/or grammatical errors;

• Contains vague references about you and/or the exact type of account and/or service you have with the service provider;

• Contains links that do not match your service provider’s official website domain;

• Requires you to recruit new investors in order to realise the return on your investment (it’s probably a pyramid scheme);

• Offers a small, “exclusive” group of investors (i.e. you) an unbelievable return on their investment and/or in a very short time;

• Asks you to divulge personal details or information;

• Requires you to make a payment in advance.

Bottom line: If it sounds too good to be true, it probably is.

6. There is no verifiable accreditation

Reputable bankers and financial services providers are accredited with the relevant authorities for the country they operate in, and this accreditation should be publicly available (e.g. on their website). If it is not, contact the relevant authority to verify credentials.

Scam checklist

Raise a red flag if you are:

1. Contacted with a problem, prize or offer that seems too good to be true;

2. Asked to provide personal information;

3. Asked to pay anything immediately/in advance;

4. Hurried into making decisions, handing over information or making a payment;

5. Asked to pay via a very specific and/or unusual method;

6. Unsure of the source of the information (e.g. unverified email, text/WhatsApp/Telegram message, social media, webchat);

7. Suspicious about the content (e.g. spelling/grammar errors, vague references to your account, unidentified links);

8. Unable to verify the source’s credentials.

If you red-flag any of the above:

1. Do not give your personal or financial information.

2. Do not pay anything until you have verified the source and information.

3. Do not open emails and/or click on any links that are not verifiable.

4. Do not call back or respond to sources that are not verifiable.

5. Resist pressure to act immediately; always take time to verify.

6. Check credentials and accreditation and verify directly with the service provider.

7. Stop and talk to someone you trust. A friend, family member or trusted financial services provider should be able to talk it through with you before you take any action.