Technology has made it easier to save cash so that, come January, there’s still a little stash left to tide you over till the end of the “longest month of the year”. Unfortunately, criminals feel they are entitled to your hard-earned bonus or stokvel payout too.
Scammers are constantly coming up with variations of existing scams and new schemes, making it impossible to detail every sort of scam, says Neven Narayanasamy from specialist loan provider, DirectAxis.
“They know people are winding down for the holidays and spending their bonuses.”
What’s even worse, says Neven, is that scams targeting savers and those who have had end-of-year windfalls, has increased since lockdown.
“According to the South African Banking Risk Information Centre (SABRIC) criminals are particularly active at this time of year as,” Neven warns.
“The organisation’s 2022 annual crime statistics reports shows that although there were decreases in some financial crime, there were significant increases in others.”
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“The best way to avoid scams is to be constantly vigilant” he says.
“Don’t think that it’ll always happen to someone else - everyone is a target, from financially savvy company directors to tech-phobic pensioners. Fraudsters identify and exploit vulnerabilities. They may pretend to be a big, new client that could ensure the company meets its budgets for the year or a helpful banking employee trying to facilitate a pension payment.
“Most financial services companies have fraud departments and will act to shut down websites, bank accounts and other mechanisms used as part of the fraud. Reporting scams is the best way to fight back. Even if you have spotted the scam, reporting it may prevent others falling victim.”
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“As we approach the peak season for stokvel withdrawals,” Cebile Magongo, Growth Specialist at FNB Cash Investments pleads, “we urge consumers to take the necessary safety measures when distributing their contributions.
“Our digital solution enables our customers to distribute members contribution using digital platforms which is safe and convenient.”
Cebile shares a few safety considerations for members when distributing their contributions:
1. It is advisable to process all payments through safe and digital platforms. This will not only safeguard their money but will also help the scheme save on cash handling fees as digital payments are free.
2. Consider doing all digital payments at the last stokvel meeting, ensuring that when members leave the meeting, their funds have been transferred into their personal bank accounts.
3. Avoid announcing stokvel meetings or stokvel money withdrawal dates on social media, to friends or family members. This should only be exclusive to members of the stokvel group.
4. Avoid carrying and travelling with large sums of money during this peak season.
5. If you are not using digital channels, do not withdraw all the funds at the same time. 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 club members’ contributions on high-risk days such as month ends.
8. Encourage stokvel members to reinvest or save a portion of their contributions for other important goals.
“While we understand that some stokvels group still operate on cash, they must take the necessary precautions to ensure that they are safe. We encourage members to avoid travelling alone but as group when going to withdraw money at the bank. This may help minimise falling victim of a crime.”
