Imposter or impersonation scams are on the rise in South Africa. Recent reports highlight a significant increase in sophisticated fraud schemes involving criminals posing as legitimate authorities, service providers, or individuals to deceive victims and extract money or personal information.
Examples include impersonating the South African Revenue Service (Sars), police officers, government departments, or banks. These scams often involve threats, urgent payment requests, or the promise of large sums of money. According to reports, digital banking fraud has seen a particularly alarming increase, with a 45% surge in incidents and a 47% rise in related financial losses during the past year. T
he Southern African Fraud Prevention Service (SAFPS) reports a 32% increase in reported fraud incidents overall in 2024, with banking fraud making up 45% of these incidents. Laykin Abrahams, claims specialist at iTOO Special Risks, notes that this trend is underscored by the influx of claims the insurer has seen in recent months, particularly on the personal lines side.
In the past two months, iTOO has received three claims totalling R589 000 from clients who were victims of impersonation fraud. “In one case, scammers posed as police officers or members of law enforcement and called the insured, claiming there was a warrant for their arrest and required bail money to be sent via electronic funds transfer (EFT). That claim amount was for R183 000,” she says.
“In another case, the insured joined a WhatsApp group, thinking it was from one of the major banks and invested money. That claim amount was R344,000R344,000.In a second case involving the same bank, scammers called the insured, claiming there was suspicious activity on their account. They instructed the insured to transfer funds from their legitimate account to a new account supposedly set up by the bank to secure it from the perpetrators. That claim amount was R62,000.”
Abrahams explains that verification goes a long way in preventing these scams and warns that people should always be on the lookout for potential criminal activity, especially when contacted to transfer money or provide personal information. “Transferring funds into an account as prompted by someone online is never wise. If you receive a call about suspicious activity on your account, it's always best to visit the bank in person to verify the information,” she says. “While it may seem old-fashioned, it's safer than taking risks online. We've seen an increase in investment scams on platforms like WhatsApp, where people join groups thinking they are legitimate and end up losing money. Verification goes a long way in preventing these scams.”
Sadiyah Mather, claims specialist at iTOO, cautions that people should always do their own investigative work and not be bullied or forced into taking action based on information provided by scammers.
“Always verify the details, do the checks, and seek advice from someone you trust who can assist in such situations. Banks will never ask for PINs over the phone, and any authentication usually involves prompts through your banking app, requiring biometrics for approval,” she says.
“Regarding the digital arrest scam, the South African Police Service will never execute arrest warrants over the phone. Arrest warrants must be executed physically, and they won't call you to inform you of alleged crimes. It's easy for scammers to create fake documents using PDF editors, adding official-looking logos, and concocting false claims. These tactics exploit fear – fear for liberty, money, and reputation – because scammers understand that people want to avoid trouble," Mather says.
PERSONAL FINANCE