AS the festive season approaches, many stokvel groups are in the process of splitting their accumulated contributions to members for the festive season.
However, fraudsters and criminals are eager to scam and steal their contributions.
Growth specialist at FNB Cash Investments Cebile Magongo advises adopting safer distribution channels to avoid falling victim.
ALSO READ: Trafficking Horror: Gogo shocked!1. Process payments through safe and digital platforms to safeguard money and help the scheme save on cash handling fees.
2. Conduct all digital payments at the last stokvel meeting, ensuring that members leave the meeting with their funds.
3. Avoid announcing stokvel meetings or stokvel money withdrawal dates on social media, to friends or family members.
4. Avoid carrying and travelling with large sums of money during this peak season.
5. Do not withdraw all the funds at the same time but consider staggering the withdrawals into different days to ensure that your contributions are safe.
6. Make cash withdrawals during business hours when it’s safer with security guards present.
7. Avoid making cash withdrawals of their contributions on high-risk days such as month end.
8. Invest or save a portion of their contributions for other important goals.
While it's no secret that stokvel groups still operate on a cash basis, Magongo advised that members should take the necessary precautions to ensure that they are safe.
“We encourage members to avoid travelling alone when going to withdraw money at the bank and rather go in a small group. This may help minimise falling victim to crime,” he said.
The National Consumer Commission (NCC) has observed a significant rise in scams affecting South Africans, including impersonating companies, investments, financial scams, multiplication schemes, and pyramid schemes.
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To combat these, the NCC has partnered with Southern African Fraud Prevention Services (SAFPS) to create an online reporting tool called Yima.
The tool aims to combat online scams related to goods and services, such as vehicle purchases.
Nazia Karrim, head of product development at SAFPS, highlighted the growing trend of ancestry scams that exploit African cultural beliefs.
She said the losses are substantial, sometimes involving sexual abuse of female victims and encouraged consumers to complete scam awareness and prevention efforts using Yima Tool services.
