Official letterhead forgeries scam CoE customers

The CoE has issued an urgent warning to all its service providers and the public about a sophisticated payment scam to defraud them.

The city has intercepted fraudulent activity when criminals use forged letterheads of political offices to solicit money from unsuspecting suppliers.

The scam involves fraudsters creating fake payment agreement letters, such as a fraudulent document recently uncovered, addressed to a service provider.

These convincing forgeries are created on what appears to be an official letterhead from the office of the MMC for Finance.

The fraudulent letters promise a significant payment for services rendered. In one instance, R750 000 was promised for sound systems and tents. Scammers then contact the service provider and demand a fee to have this “outstanding payment” processed and expedited.

“This is a criminal act, and we condemn it in the strongest possible terms,” said the MMC for Finance, Jongizizwe Dlabathi.

“The city will never ask a service provider to pay to have their legitimate invoice processed. Our payment protocols are clear and do not involve any such fees. We are working with law enforcement to track the perpetrators of this crime, and they will face the full might of the law.

How to protect yourself

The CoE urges extreme caution. The fraudulent documents will look authentic and may include:

• the CoE official logo and address;

• a specific amount owed to the supplier;

• a clause stating payment will be made within 30 days;

• forged signatures of city officials, such as a recent forgery using the name of the PA to the MMC for Finance.

What to do if targeted:

• DO NOT PAY: Never pay any individual claiming they can expedite a payment from the city;

• VERIFY: If you receive a suspicious letter, email or phone call, do not use the contact details provided on the document. Instead, contact the city’s official departments directly through the numbers listed on the official CoE website;

• REPORT: Report any suspected fraud to the city’s Anti-Fraud Hotline: 0800 102 201.

The city is taking measures to safeguard everyone from such criminal activities.