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Top Scams to Watch Out for as South Africans Start the New Year: Stay Informed and Protected

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As South Africans return from their end-of-year vacations, they often approach the new year with renewed energy and excitement. However, this time of year also brings financial pressures, especially for families preparing for school and university expenses. Unfortunately, it’s also a prime period for scammers to exploit these vulnerabilities. Elmi Kemp, communications lead at the South African Fraud Prevention Service (SAFPS), highlights the most prominent scams to be aware of as we enter 2025.

1. Loan Scams

Loan scams are designed to deceive individuals into paying fees for loans that never materialize. Scammers often lure victims with promises of guaranteed approval and large sums of money, regardless of credit history.

Warning Signs:

  • Guaranteed Approval: Promises of large loans without regard for your credit record.
  • Pre-Payment Requests: Demands for upfront fees for administration or processing.
  • Urgency: Pressure to act quickly before the offer expires.
  • Impersonation: Claims of affiliation with well-known organizations, but with suspicious email addresses.

Kemp advises, “If it looks too good to be true, it probably is.” Always be cautious and verify the legitimacy of any loan offer.

2. Bursary and Scholarship Scams

With education being a top priority for many South Africans, the allure of bursaries and scholarships can lead to scams. Fraudsters may request advance fees to facilitate applications, only to disappear once payment is made.

Warning Signs:

  • No Minimum Requirements: Offers that don’t require proof of academic performance or financial need.
  • False Notifications: Receiving notifications for bursaries you didn’t apply for.
  • Unknown Sponsors: Inability to find information about the bursary or sponsor online.

Nazia Karrim, head of product development at SAFPS, warns that these scams can lead to significant financial loss and personal information compromise.

3. Shopping Deals That Are Too Good to Be True

As families shop for textbooks, laptops, and school uniforms, social media marketplaces can become breeding grounds for scams. Scammers often create fake profiles to gain trust and exploit unsuspecting buyers.

Warning Signs:

  • Unbelievable Offers: Prices that seem too low or free offers that are time-sensitive.
  • Redirects to Fake Sites: Links that lead to unfamiliar or spoofed websites.
  • Phishing Attempts: Requests for payment through untraceable methods.

Karrim emphasizes the importance of vigilance when shopping online, especially on social media platforms.

Scams Prevention Toolbox

To combat these scams, the SAFPS has launched Yima, a comprehensive scams prevention toolbox for South Africans. This platform allows users to report scams, scan websites for vulnerabilities, and access valuable resources on identifying fraud.

Key Features of Yima:

  • Report Suspicious Activity: Users can report fake websites or phishing attempts directly to SAFPS.
  • Scam Hotline: A dedicated number (083 123 7226) for reporting fraud incidents to banks, retailers, and law enforcement.
  • Protective Services: Access to products like Protective Registration and Fraud Victim Registration to safeguard against impersonation scams.

Karrim states, “Knowledge is power. By providing these tools, we empower consumers to protect themselves against fraud.”

As South Africans embark on a new year filled with opportunities and challenges, staying informed about potential scams is crucial. By recognizing the warning signs and utilizing resources like Yima, individuals can better protect themselves and their finances. Remember, vigilance is key—if something seems too good to be true, it probably is. Stay safe and informed as you navigate the new year!

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