With the advent of digital sophistication in the consumer credit domain, the convenience and privacy of being able to conduct financial transactions have been affected by cyber fraudsters on the hunt to ruthlessly exploit already financially stressed consumers.
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The National Credit Regulator (NCR) warns consumers to be vigilant of the stealthy methods employed by fraudsters when deploying scams on digital platforms such as WhatsApp, email, fake websites, SMS, telephone and more.
These scams target over-indebted consumers applying for credit or through services such as debt counselling.
Targeted consumers are usually vulnerable and desperate, thus more susceptible to scams warns Poppy Kweyama, manager for education and communication at the NCR.
The modus operandi of these fraudsters differs by the scam.
For example, consumers applying for loans are often demanded an “upfront payment” with a promise of the loan money being released into their bank accounts after paying the “upfront fee”.
The “upfront fee” is claimed to pay for different things such as VAT, insurance for the loaned amount, the release of funds from overseas to South Africa, attorney fees and more.
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“Once the initial upfront fee is paid by the consumer, there is often repeated demands for more money or the fraudster will vanish without a trace leaving the unsuspecting consumer or…
