Black Friday Alert: South African Banks to Warn Shoppers Amid Rising Online Fraud Risk

With online scams on the rise, South African banks urge shoppers to be vigilant this Black Friday

As Black Friday approaches, the excitement over major discounts is tempered by a stark warning from South African banks. In light of a recent surge in digital banking fraud, the South African Banking Risk Centre (Sabric) and leading banks have advised online shoppers to exercise caution to avoid falling prey to online scams. With the Annual Crime Statistics report for 2023 showing a 45% increase in digital banking fraud cases, it’s clear that South Africans are more vulnerable than ever during peak shopping seasons like Black Friday.

Rising Digital Fraud: Key Statistics

Sabric’s 2023 report reveals concerning figures around the growing risk of online fraud in South Africa. According to the report, digital banking fraud resulted in a 47% rise in financial losses, with banking apps accounting for 60% of these crimes. Another alarming statistic highlighted the increase in “Card Not Present” (CNP) fraud — fraud occurring during online transactions. CNP fraud rose by 19% over the last year, with South Africans losing a staggering R338.5 million in 2023 alone.

Common Black Friday Scams to Watch Out For

During Black Friday, banks warn consumers to be on high alert for scams that exploit shoppers’ eagerness for discounts. Capitec’s head of CSI and financial education, Jean Rossouw, cautions shoppers to verify the authenticity of online stores to avoid counterfeit or fake products. Scammers often use fake websites, phishing emails, and even cloned interfaces of reputable brands to collect personal and payment details. This Black Friday, Rossouw advises, “If a deal appears too good to be true, it likely is.”

Tips from Banks on Staying Safe

South African banks are sharing tips on how shoppers can navigate Black Friday without falling victim to fraud:

1. Stick to Trusted Sites: Verify websites using resources like the South African Fraud Prevention Service’s Yima tool, which evaluates a website’s trustworthiness.
2. Enable 3D Secure: Legitimate sites will require two-factor authentication for transactions, often redirecting to a 3D secure page for added protection.
3. Update Software and Use Anti-virus: Ensure that your device’s software is current and has robust anti-virus protection to guard against malicious sites.
4. Avoid Sharing Sensitive Information: Do not provide details such as your ID number or date of birth; retailers generally do not require these for transactions.

Spotting Fake Websites

Fake websites are among the most dangerous traps during the Black Friday season. Many scammers rely on website spoofing, where even a single character change in the URL can trick shoppers into believing they are on a trusted site. For added security, shoppers can use tools like Yima or the browser plugin provided by the Artists Against 419 (AA419), which tracks and shuts down thousands of fake sites.

Password Safety and Secure Transactions

Banks also recommend that users secure their online accounts by using strong, unique passwords or passphrases for each website and consider using a reputable password manager. For additional security, it’s crucial not to save passwords or payment information on any device that could be hacked.

Shopping Smart and Staying Safe

As South Africans gear up for Black Friday, the message from Sabric and local banks is clear: be vigilant and prioritize security when shopping online. By following these tips and staying informed about the risks, consumers can enjoy the deals without falling victim to fraud. As cybercriminals evolve, so too should shoppers’ awareness and proactive measures. This Black Friday, let security be at the top of the shopping list.

Also read: Top Black Friday Shopping Tips: Get the Best Deals on November 29th