THE recent shutdown of an alleged illegal contact centre in Umhlanga has reignited concerns among South Africans about the growing risk of phone scams — and how to tell them apart from legitimate telesales calls.

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The Umhlanga bust in the Northglen News (Alleged luxury swindlers appear in court, 24 April, page 4) has highlighted the darker side of the telesales industry, where bad actors exploit unsuspecting consumers. Yet industry leaders warn that this is only one part of a more complex picture.

Outbound telesales, when properly regulated, remains an important contributor to South Africa’s economy. It connects consumers — particularly in underserved communities — with financial products and services they might otherwise not access, while also creating employment opportunities.

Menelisi Cele, head of telesales at The Unlimited, said the sector plays a vital role in job creation and skills development.

“For many, it’s a first job and a stepping stone into the formal economy,” Cele explained. “Responsible telesales operations also support thousands of households and provide opportunities for long-term financial stability.”

He emphasised that legitimate operators function within strict regulatory frameworks and are accountable to oversight bodies such as the Financial Sector Conduct Authority (FSCA). These companies invest in staff training, compliance systems, and consumer protection measures.

However, the actions of fraudulent call centres continue to undermine public confidence, making it more difficult for reputable businesses to engage with potential customers.

How to recognise a legitimate call
Experts say consumers can protect themselves by looking out for several key indicators:

Clear identification: Legitimate agents should immediately provide their name, company, and the reason for the call.
Verifiable information: The organisation should be easily confirmed through official platforms and be able to provide credentials such as a Financial Services Provider (FSP) number where applicable.
Respect for consent: Genuine callers will honour requests to end the conversation or opt out of future contact.
Professional conduct: Trained agents follow strict guidelines. Vague or inconsistent responses may signal a scam.
Secure payment authorisation: Reputable providers use systems like DebiCheck, which requires bank-approved confirmation before any debit order is processed.

Cele noted that restoring trust in the sector will require more than regulatory compliance.

“Legitimacy is about consistently demonstrating credibility — prioritising transparency, consent, and making it easy for customers to verify who they are dealing with,” he said.

The Umhlanga case, he added, should serve as a broader wake-up call for regulators to strengthen enforcement, for consumers to remain vigilant, and for the industry to raise its standards.

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