Top scams to watch out for as South Africans start the New Year

-

 



As South Africans embark on a new year, it's essential to remain vigilant against various scams that tend to surge during this period. The excitement of new beginnings, especially for recent matriculants entering universities and colleges, can sometimes overshadow caution, making individuals more susceptible to fraudulent schemes. This article highlights prevalent scams to watch out for and offers guidance on safeguarding oneself.


1. Loan Scams


Loan scams involve fraudsters offering loans under false pretenses, often promising quick approvals and favorable terms to lure victims. These scams can lead to significant financial losses and identity theft.


How to Protect Yourself:


Verify Legitimacy: Ensure that the lender is registered with the National Credit Regulator (NCR).


Avoid Upfront Fees: Legitimate lenders do not require payment before disbursing a loan.


Research: Look up reviews and reports about the lender to identify any red flags.


2. University Placement Scams


With the academic year commencing, scammers exploit eager students by offering guaranteed university placements in exchange for fees. These fraudulent offers often target those desperate to secure spots at their desired institutions.


How to Protect Yourself:


Official Channels: Communicate directly with university admissions offices.


Be Skeptical: Be wary of unsolicited offers promising guaranteed placements for a fee.


Report Suspicious Activity: Notify university authorities of any dubious offers.


3. Accommodation Scams


As students seek housing near campuses, scammers post fake rental listings to steal deposits or personal information.


How to Protect Yourself:


Visit Properties: Always inspect accommodations in person before making payments.


Use Reputable Platforms: Rely on established rental agencies or university housing services.


Avoid Upfront Payments: Be cautious of landlords demanding full payment before signing a lease.


4. Phishing and Online Scams


Cybercriminals use phishing emails and fake websites to trick individuals into revealing personal and financial information.


How to Protect Yourself:


Verify Sources: Check the authenticity of emails and websites before providing information.


Secure Connections: Use trusted internet connections, especially when handling sensitive data.


Stay Informed: Regularly update yourself on common phishing tactics.


5. Employment Scams


Job seekers, particularly new graduates, may encounter fake job offers requiring upfront payments for training or uniforms.


How to Protect Yourself:


Research Employers: Confirm the legitimacy of companies before applying.


No Upfront Fees: Genuine employers do not ask for money during the hiring process.


Official Communication: Be cautious of employers using personal email accounts for correspondence.


6. Investment and Ponzi Schemes


Scammers promote high-return investment opportunities with little risk, operating schemes that collapse and result in losses for investors.


How to Protect Yourself:


Due Diligence: Investigate investment opportunities thoroughly.


Regulatory Checks: Ensure the investment is registered with the Financial Sector Conduct Authority (FSCA).


Be Skeptical: If it sounds too good to be true, it probably is.


7. Tax Scams


Fraudsters impersonate South African Revenue Service (SARS) officials, demanding immediate payment for alleged tax debts.


How to Protect Yourself:


Direct Verification: Contact SARS directly to confirm any claims.


Secure Payments: Use official SARS channels for any transactions.


Report Scams: Inform SARS of any suspicious communications.


8. Fake Charities


Scammers solicit donations for bogus charities, especially during times of crisis or significant events.


How to Protect Yourself:


Verify Legitimacy: Confirm the charity's registration status.


Research: Use platforms like CharitySA to validate organizations.


Be Cautious: Avoid making donations under pressure or through unsolicited requests.


9. Tech Support Scams


Individuals receive unsolicited calls or messages claiming their devices are compromised, leading to unauthorized access or payments.


How to Protect Yourself:


Do Not Engage: Ignore unsolicited tech support offers.


Official Support: Seek assistance directly from your device's manufacturer.


Protect Information: Never share personal data with unverified sources.


10. "Tap to Pay" Scams


With the rise of contactless payments, scammers exploit vulnerabilities to make unauthorized transactions.


How to Protect Yourself:


Monitor Accounts: Regularly review bank statements for unfamiliar transactions.


Use Protective Gear: Consider RFID-blocking wallets to prevent unauthorized scans.


Set Alerts: Enable notifications for transactions to detect suspicious activity promptly.


Conclusion


Staying informed and cautious is crucial in protecting oneself from the myriad of scams prevalent in South Africa, especially at the start of a new year. By understanding common fraudulent tactics and implementing preventive measures, individuals can safeguard their finances and personal information. Always verify the legitimacy of offers, avoid sharing sensitive data with unverified sources, and report suspicious activities to the relevant authorities.

About Us

About Budget Like a Boss

Welcome to Budget Like a Boss!

At Budget Like a Boss, we believe that financial freedom starts with smart budgeting. Our mission is to provide practical tips, tools, and strategies to help South Africans master personal finance, save money, and achieve their financial goals.

Who We Are
We are passionate about making financial education accessible and relatable for everyone. Whether you’re looking to create a budget, understand South African tax laws, or explore saving and investment opportunities, we’re here to guide you.

Why Choose Us?
Locally-focused advice tailored for South African households.
Easy-to-follow guides for every stage of your financial journey.
A commitment to helping you budget like a boss!
Thank you for visiting our blog. Join our growing community of empowered readers today!

Popular posts from this blog

Understanding the Impact of the 2025 Budget Address Postponement in South Africa

-
Image
Understanding the Impact of the 2025 Budget Address Postponement in South Africa On February 19, 2025, South Africa experienced an unprecedented event: the postponement of its annual Budget Speech. This marks the first time in the nation's 31-year post-apartheid democracy that such a delay has occurred. The postponement was due to a disagreement within the governing coalition over a proposed increase in the Value-Added Tax (VAT). This article delves into the implications of this delay on South Africa's economy, political landscape, and the daily lives of its citizens. The Catalyst: Disagreement Over VAT Increase The primary cause of the budget delay was a dispute within the coalition government regarding a proposed 2% increase in VAT, raising it to 17%. The African National Congress (ANC), which had lost its majority in the previous election, needed support from coalition partners to pass the budget. The Democratic Alliance (DA), a key coalition partner, opposed the VAT hike, a...
Read more

Navigating Retirement Age Dismissals Under South African Law

-
Image
  Navigating Retirement Age Dismissals Under South African Law In South Africa, the intersection of employment law and retirement age is a nuanced area that requires careful consideration by both employers and employees. Understanding the legal framework governing retirement age dismissals is essential to ensure compliance and protect the rights of all parties involved. Understanding Retirement Age in South Africa Unlike some jurisdictions, South Africa does not have a legislated mandatory retirement age. The retirement age is typically determined by the terms of the employment contract, company policies, or pension fund rules. Commonly, retirement ages are set at 60 or 65 years. However, these ages can vary depending on the specific circumstances of the employment relationship. legalwise.co.za Legal Framework Governing Retirement Age Dismissals The Labour Relations Act (LRA) provides the primary legal framework for employment relationships in South Africa. Section 187(1)(f) of the...
Read more

The Hard Truths of South Africa's Economy: The Stats That Can't Be Ignored

-
Image
  Run on Numbers: The Statistics That Keep South Africans Awake at Night In the tranquil hours of the night, as the world slumbers, many South Africans find themselves wide awake, their minds racing with concerns that disrupt their sleep. These concerns are often rooted in statistics that highlight the nation's pressing challenges. From mental health issues to economic disparities, these numbers paint a vivid picture of the struggles faced by many. In this blog, we will delve into the statistics that keep South Africans awake at night, exploring their implications and the steps being taken to address them. 1. Mental Health Challenges Mental health is a significant concern in South Africa. A study published in Frontiers in Public Health revealed that 25.7% of South Africans experience probable depression, with the Northern Cape province reporting the highest prevalence at 38.8%. frontiersin.org Additionally, 29.3% of individuals in the Northern Cape suffer from probable anxiety. T...
Read more