The banking industry has noted an increase in clients who have been duped by fraudsters posing as bank officials, tax officials or investment companies. In response, Standard Bank has now invested in new technology to caution and protect vulnerable consumers.
Data from the South African Banking Risk Information Centre (Sabric) shows that vishing (where scammers use phone calls and social engineering skills to manipulate victims into disclosing confidential information) has become the biggest contributor to application, digital banking and card-related fraud.
Unlike phishing scams, which deceive people into clicking on links in texts and emails, vishing calls trick people into sharing sensitive banking information or taking actions that compromise the security of their bank accounts.
How the scam works
Scammers are targeting older people who are approaching retirement or have recently received their cash payouts. They propose ‘high-return’ investment opportunities and persuade victims to transfer funds into fictitious investment accounts with false promises. In another tactic, fraudsters 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’.
Dr Belinda Rathogwa, Standard Bank’s Head of Digital and E-commerce, encourages everyone to remain vigilant so they do not fall for such scams. “The bank will never call to ask you to move your money to an account that you do not know about. If you are going to invest your hard-earned money, verify the details of the investment company that you are dealing with. Check that they are registered with the Financial Services Conduct Authority (FSCA),” says Rathogwa.
She adds, “These individuals 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 little recourse for consumers, so that many are unable to recover all of their lost funds and most don’t recover any of their money, even with their bank’s assistance”.
Rathogwa goes on to explain that fraudsters have turned to social engineering because the risk controls used by the banks 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 that is 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 by protecting them,” adds Rathogwa.
How to protect yourself from fraud
- 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.
- Use your fingerprint or facial recognition to secure your device and to sign in to your banking app for added security.
