Fraud in South Africa’s financial and property sectors continues to pose a serious threat to businesses, homeowners, tenants, and property professionals. Criminals are constantly finding new ways to exploit weaknesses in systems, and as a result, protecting yourself requires both awareness and action.
Payment Fraud: A Shared Responsibility
Banks have introduced advanced measures such as two factor authentication and real time monitoring to reduce payment fraud. However, challenges remain. Outdated systems, identity theft, and inconsistent verification practices leave gaps that fraudsters can exploit.
One of the biggest risks comes from mismatched account details, where money is paid into the wrong account because account names and numbers are not properly cross checked. Fraudsters also use stolen identities to open fake accounts, making it difficult to detect wrongdoing. Instant payments increase the danger, as once funds clear, recovering them becomes nearly impossible.
For both individuals and businesses, the lesson is clear: preventing fraud is a shared responsibility. Businesses should verify new suppliers thoroughly, enforce strict internal approval processes, and make use of verification services before releasing payments. Individuals, too, should remain cautious and double check all financial details before making transfers..
Real Estate Fraud: Growing Risks in the Property Market
In the property market, scams are becoming increasingly sophisticated. Criminals target buyers, sellers, estate agents, and attorneys through phishing emails or intercepted communications. A common scam involves sending fraudulent “updated banking details” that appear to come from a legitimate attorney or agent. If the victim pays into the fake account, the money is lost, and they may even face legal consequences for breaching a contract.
Rental fraud is also widespread, with fake landlords advertising non-existent properties or taking deposits before showing a home. In many cases, victims only realise they’ve been scammed once it’s too late.
Red Flags to Watch Out For
- There are several warning signs that can help you identify potential fraud:
- Pressure to act quickly or transfer money urgently.
- Emails with spelling errors, unusual wording, or slightly altered addresses.
- Requests for upfront deposits before viewing a property in person.
- Being aware of these signs can prevent costly mistakes.
How to Protect Yourself
Protecting yourself requires vigilance and verification at every stage of a transaction. Always confirm banking details directly with the bank or attorney before making transfers. Verify the credentials of estate agents with the Property Practitioners Regulatory Authority (PPRA).
If you receive a suspicious email, avoid replying directly, rather create a new message using verified contact details. Whenever possible, sign important documents in person and ensure that the professionals you work with are insured and affiliated with reputable networks.
The Bottom Line
Fraud in payments and property transactions is evolving faster than ever before. While the risks are significant, they can be managed with careful verification, secure processes, and the support of trusted professionals. By staying alert and prioritising safety, both businesses and individuals can avoid becoming victims of these costly scams.
