Scammers exploit South Africans desperate for cash

The new year sees South Africans often approach it with optimism and a sense of purpose, but for many, this time also marks a financially challenging period.
Parents and students grapple with expenses like school and university registration fees, textbooks and securing accommodation. However, scammers lie in wait to exploit the desperation and urgency that accompany these commitments.
“While the start of the year is exciting, it can also be a costly time for most South Africans,” says Elmi Kemp, the communications lead at the South African Fraud Prevention Service (SAFPS).
“Unfortunately, this financial pressure creates fertile ground for scammers and fraudsters to thrive.”
To combat this, Kemp and her SAFPS colleagues are raising awareness of the most prominent scams targeting South Africans and offering practical advice on how to stay vigilant.

Loan scams: big promises, bigger losses
One of the most pervasive scams involves fake loans.
Scammers entice victims with promises of guaranteed approval, low interest rates or debt consolidation, preying on those desperate for financial relief.
“Scammers might ask for administrative, processing or insurance fees upfront, only to vanish once payment is made,” warns Kemp.
“They often use the process to phish for personal information, enabling them to commit further fraud like opening accounts or taking out loans in your name.”
Red flags to watch out for:
• Guaranteed approval: Loans offered without consideration of your credit history.
• Pre-payment requests: Demands for upfront fees via untraceable payment methods.
• Urgency: Limited-time offers designed to pressure you into quick decisions.
• Impersonation: Fraudsters pretending to represent well-known institutions.
• Personal probing: Requests for sensitive information, often unnecessary for legitimate applications.
“Vigilance is crucial. If an offer seems too good to be true, it probably is,” Kemp advises.

Bursary and scholarship scams: exploiting the quest for education
The high cost of education makes bursaries and scholarships an attractive option for many families.
However, scammers have seized on this to run schemes exploiting hopeful applicants.
“Scammers might demand facilitation fees, claiming they are required to process the application or release documents. Victims are often strung along for months, losing significant sums of money and risking identity theft through phishing,” says Nazia Karrim, the head of product development at the SAFPS.
Red flags to watch out for:
• No qualifying criteria for applicants, such as academic performance or financial need.
• Requests for administrative fees upfront.
• Notifications about bursaries or scholarships you did not apply for.
• Offers to help you with applications or late submissions.
• Unknown sponsors with no online presence or official website.

Shopping scams: when deals are too good to be true
Parents often turn to online marketplaces and social media to find affordable laptops, textbooks and uniforms.
Unfortunately, scammers use these platforms to lure victims with deals that seem too good to pass up.
“Social media makes it easy for scammers to create fake profiles and build trust with potential victims. Once they’ve gained your trust, they can access your personal information or trick you into making untraceable payments,” says Karrim.
Red flags to watch out for:
• Unbelievable offers: Suspiciously low prices or limited-time discounts.
• Fake websites: Links to spoofed sites resembling legitimate retailers. Use the SAFPS Yima scanner (available on the Yima website) to verify a site’s legitimacy.
• Phishing for payment details: Requests for card information or payments via untrusted methods.
• Communication errors: Poor spelling, grammatical mistakes and inconsistencies in contact details.
To empower consumers, the SAFPS launched Yima, a scam prevention website offering tools to detect and report scams.
“The Yima website allows users to report suspicious activity, scan websites for vulnerabilities and access tips on identifying scams. The intelligence gathered is shared with law enforcement to support investigations,” Karrim says.
Additionally, Yima provides a scam hotline – 083 123 7226 – enabling users to report fraud directly to their banks, insurers, retailers, and even the SAPS via one number.
With initiatives like the Yima toolbox, the SAFPS continues to lead the fight against fraud in SA.
“We’re empowering consumers with the knowledge and tools they need to stand up to scammers,” says Karrim.