As we wrap up the year and move into the festive season, we tend to become less vigilant and let our guard down. Unfortunately, as we unwind, fraudsters are amplifying their efforts to take advantage of unsuspecting victims. Renita Govender shares some tips to help investors safeguard their personal information and avoid falling prey to common scams.
Our personal information is valuable, yet we are required to disclose our details frequently to access our bank accounts and investments, among other things. Fraudsters and cybercriminals know that we are more likely to share our information unwittingly when we are in holiday mode. By taking steps to secure our information and being aware of red flags, we can decrease the likelihood of being fleeced this festive season.
Be wary of sharing your personal information
Often fraudsters impersonate financial service providers and other legitimate organisations in an attempt to get hold of their clients’ personal information using SMSs, fake websites, emails and phone calls. Once they have your personal information, they can use it to pull off a range of scams. As a rule of thumb, you should be mindful of sharing your personal information, particularly if you did not initiate the interaction, and never disclose your passwords and one-time passwords (OTPs).
Common red flags include:
- A sense of urgency for you to respond
- Not being addressed by name (e.g. “Dear client” or “Hi Sir/Madam”)
- Poor spelling and grammar mistakes
- Incorrect contact details for the service provider (you can check these details against the information provided on the organisation’s official website)
Be on the lookout for phishing attempts
‘Tis the season for bargains and great deals. Phishing remains the most common way cybercriminals prey on victims, and the increasing popularity of online shopping and promotions like Black Friday makes it easier for cybercriminals to trick us.
Avoid clicking on links or downloading attachments from unfamiliar sources
Your email and SMS inboxes are likely to be filled with amazing offers from your favourite brands. Before you click on any links, hover over them to confirm that the URLs are legitimate. If the URL differs from the text in the email body, it may be a phishing threat. Rather type URLs directly into your browser or visit the official website to access offers.
Always check the sender’s email address
Cybercriminals may use an email address that looks very similar to a trusted email address, e.g. info@allengray.co.za instead of info@allangray.co.za. Always check email addresses against those provided on the organisation’s official website.
Transact with reputable retailers and service providers
When making online payments, ensure that you are dealing with legitimate, reputable service providers and retailers that have secure payment facilities, as fraudsters often set up websites that resemble trusted sites in order to get your banking details. You can enable banking notifications that alert you to payments made from your account. Immediately report any OTPs you did not request and fraudulent activity to your bank.
If you are unsure whether an online retailer is legitimate or not, do an online search for their official website and check its customer reviews on reputable platforms.
If it seems too good to be true, then it usually is
Fraudsters are aware that many people receive bonuses and other cash lump sums during this time of the year. Be wary of anyone who approaches you with an opportunity to generate high returns on an investment in a short period, while requiring little to no effort from you. To avoid dubious investments, only engage with licensed financial advisers and reputable, experienced investment managers registered with an industry body like the Financial Sector Conduct Authority. Your investment manager should be transparent about how returns are generated, clear about the level of risk you are taking on and realistic about the range of returns you can expect to achieve.
It is usually very difficult to recoup losses from fraudulent schemes, therefore it is important to stop fraud before it happens. Trust your instincts: If something feels off, proceed with caution, take your time and do some research before taking any action. It is better to be overly cautious and miss out on a bargain or compelling investment opportunity than to lose your hard-earned money to a scam.