fraud Archives - AfricaBusiness.com

17Nov

By Africa BusinessNo Comments

African News

SAFPS Warns: Technology is Emerging as a Major Battleground in the Fight Against Fraud

International Fraud Awareness Week is a global annual event dedicated to raising awareness about the widespread issue of fraud and showcasing the efforts across various sectors to combat this growing challenge. This year it takes place from November 17 to 24. "The role technology plays in fraud, and scams is becoming particularly challenging in South Africa," says Nazia Karrim, Head of Product Development at the Southern African Fraud Prevention Service (SAFPS), “with South Africa growing into an increasingly connected society, online fraud is a significant challenge that needs to be addressed." Be Careful of Business Email Compromise (BEC) The increased nature of technology-based fraud is evident in the recent statistics accompanying it. This is a significant challenge for companies th...

2Jul

By Africa BusinessNo Comments

Fintech

Under Attack: Online Sellers Face Mounting Threat from Payment Scams

Expert reveals steps to avoid payment scams in 2024 and the top five most common The top five most common types of payment scams are phishing scams, chargeback fraud, return fraud, merchant fraud, and wire transfer fraud In 2023, US businesses saw a 71% increase in payment fraud attempts, highlighting the growing threat posed by scammers When it comes to online shopping, it’s not just customers who can fall victim to scams. Many scams target businesses and sellers, making it essential for anyone selling goods online to understand how to avoid these pitfalls and what steps to take if their business is affected. Business Wire reported a 71% surge in payment fraud attempts on US businesses in 2023, underscoring the critical need for online sellers to stay vigilant ...

16May

By Africa BusinessNo Comments

Fintech

Experts reveal how businesses and sellers can spot online payment scams

When it comes to online shopping, customers aren’t the only ones who can fall victim to scams. Many scams target businesses and sellers instead, therefore anyone selling goods online must know how to avoid being impacted and what to do if their business is affected. In fact, according to Business Wire, there was a 71% increase in payment fraud attempts on US businesses in 2023 – a statistic that highlights how important it is for online sellers to remain wary of practices that could undermine their services and cause financial damage. With that in mind, Dennis Pederson, CEO of PayFasto, has compiled a list of five common payment scams that online sellers should be aware of and how to respond in the unlucky event of experiencing them. Phishing scams Phish...

13Feb

By Africa BusinessNo Comments

South Africa News

Your hot date may be a hotline to becoming a scam victim

Technology has disrupted many aspects of traditional life. When you are sitting at dinner and seeing a couple going out on a "first date", consider that this may be their first in-person date and that they have been interacting (dating) online for months. According to global data and business intelligence platform, Statista, the number of online dating users in South Africa is expected to reach 6.7 million users by 2028. The report adds that the current user penetration rate of dating websites is believed to be 8.0% and may increase to 10.4% by 2028. This is good news for nervous daters. However, people must be aware of a darker side to online dating, warns Nazia Karrim, Head of Product Development at the Southern African Fraud Prevention Service (SAFPS). There are a lot of romance scams...

8Nov

By Africa BusinessNo Comments

South Africa News

South Africans play a greater role in becoming scam victims than they care to admit

The South African fraud landscape is becoming increasingly risky as fraudsters and scammers look to target individuals with highly sophisticated scams in an environment where it is becoming increasingly difficult for lawmakers and authorities to bring these criminals to justice. "International Fraud Awareness Week is held from 12 - 18 November, and it is important to remain actively aware about the risks fraud poses to us locally as well as globally. In particular, South Africans need to be aware how they are impacted by fraud and the urgency of implementing proactive prevention measures in their daily lives," says Nazia Karrim, Head of Product Development at the Southern African Fraud Prevention Service (SAFPS). As the custodians of fraud in Southern Africa, and to mark International Fr...

24May

By Africa BusinessNo Comments

Tech

Online merchants hit by double whammy of fraud as cost of living bites

New research from Ravelin charts the rise of the ‘criminal customer’, now the ‘number one risk factor’ for one in three online businesses The research also shows a marked growth in sophisticated & organised criminal fraud Chief Financial Officers (CFOs) and Chief Risk Officers (CROs)now have to navigate an increasingly complex fraud landscape New forms of payment amplify dispute resolution issues for merchants Online businesses are being hit by a damaging double-whammy of fraud as the cost of living crisis bites. A survey of chief financial officers (CFOs) at online merchants across 10 countries, commissioned by fraud prevention platform Ravelin has found fraud is on the increase across the board in areas including: Online payment fraud (54%) Account takeover (...

SAFPS to launch a ground-breaking platform to combat fraud

10May

By Africa BusinessNo Comments

South Africa News, Tech

SAFPS to launch a ground-breaking platform to combat fraud

Traditionally, South Africa has been a popular country among fraudsters looking for every opportunity to try and find their next victim. Statistics from the Southern African Fraud Prevention Service (SAFPS) point out that there was a 600% increase in incidents reported by their members in 2022 when compared to 2018. "The Southern African Fraud Prevention Service (SAFPS), in its role as the South African custodian of fraud prevention, has decided to take decisive action to tackle the problem that scams are posing to our economy. Over the years, the SAFPS has rolled out several important communication campaigns that aimed to educate South Africans about the various frauds and scams they can become victims of. However, the challenge is that reporting a scam – while important – is a reactive ...

19Jan

By Africa BusinessNo Comments

Business, Fintech

Fraud trends every CFO should know

PwC’s Global Economic Crime and Fraud Survey 2022 revealed that 46% of organisations have experienced fraud, corruption, or other economic crimes in the last 24 months. Ryan Mer, CEO of eftsure Africa, a Know Your Payee™ (KYP) platform provider, gives a rundown of what to look out for. 1. Fraud protection is no longer optional It’s hard to believe today, but just a few years ago, even large organisations didn’t have payment fraud protection in place. One of our clients, a listed company, had an ongoing issue with payment fraud totalling over R3 million in losses in the year prior to adopting eftsure. They haven’t lost a cent to payment fraud since. Businesses are taking the threat of payment fraud a lot more seriously than they did even two years ago. They’re acknowledging that the paym...

1Dec

By Africa BusinessNo Comments

South Africa News

Don’t be an Ass (mule) this festive

The festive season is a time to be enjoyed, spending quality time with family and showering others in kindness and generosity. However, the South African festive season is also, unfortunately, synonymous with fraud. If history is anything to go by, many South Africans are expected to fall victim to fraud during this period. The Ombudsman for Banking Services (OBS), Reana Steyn, advises South Africans that scammers and fraudsters are likely to intensify their activities during the holiday season. “It is important to note that these fraudsters do not discriminate or have any regard for their victim's age, race or profession. Unfortunately, it is often the elderly that are most vulnerable and most likely to be left devastated by these fraudsters,” says Steyn who adds that these fraudsters a...

31Jan

By Africa BusinessNo Comments

Fintech

New wave of fraud targeting bank customers

Fraud continues to pose the risk of serious financial losses for banking customers. All indicators are pointing towards the fact that there are new scams and an increasing number of the victims, warns Reana Steyn, the Ombudsman for Banking Services (OBS). The basic modus operandi of these scams is not new. However, over the years, there is a constant change in the execution techniques that fraudsters have applied. “The success of these scams, and their evolution, is heavily guided by how the consumer will react in each situation,” advised Steyn. Steyn highlighted two recent matters that were investigated by her office where two private banking customers fell victim to the same scam under the exact same circumstances. The story behind convincing the victims to disclose their confiden...