Fake Compensation Fund Emails Target South African Employers in New Scam, NEASA Issues Warning

South African businesses have been warned of a fraudulent email scam targeting employers with fake Compensation Fund correspondence. The National Employers’ Association of South Africa (NEASA) has issued an urgent alert after reports surfaced of employers receiving false demands for payment in exchange for Letters of Good Standing.

A Letter of Good Standing is a crucial certificate issued by the Compensation Commissioner, proving that an employer has met their obligations under the Compensation for Occupational Injuries and Diseases Act (COIDA). This document is often required for government contracts and ongoing operations.

But scammers are now exploiting this system to deceive businesses into paying into bogus bank accounts.

How the Scam Works

The fraudulent email claims the employer’s business is undergoing deregistration for non-compliance with COIDA. It includes threatening language about blacklisting, interest charges, and even legal action.

“Your company has been put on the deregistration process due to your failure to comply with the Compensation for Occupational Injuries and Diseases Act,” the scam email reads.

NEASA has confirmed that the banking details and email address used in these messages do not belong to the official Compensation Fund.

“This email is fraudulent,” said NEASA. “The banking details provided on the form are not those of the Compensation Fund, and the email address used is fake.”

What Employers Should Do

NEASA is urging employers to remain vigilant and not to make any payments based on suspicious emails. Instead, they recommend the following:

• Verify all communication directly with the Department of Employment and Labour or the Compensation Fund.

• Do not click on suspicious links or download attachments.

• Report the scam to law enforcement.

• Forward suspicious emails to NEASA at: rona@neasa.co.za

“We request employers who have received similar emails to forward them to us so we can track and report this scam,” NEASA said.

Protecting South Africa’s Business Sector

This latest scam highlights the growing threat of cyberfraud targeting South African businesses, particularly in areas involving government services and compliance.

Business owners are reminded to regularly check their COIDA status via official channels and maintain strong internal fraud detection practices.

As NEASA continues to raise awareness, it’s clear that staying informed and cautious is key to protecting your business from these deceptive tactics.

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com