The latest annual Ombudsman for Banking Services in South Africa report (OBS) details two cases highlighting the need for consumers in South Africa to be vigilant when conducting financial transactions online.
The OBS resolves personal and small business banking complaints, about banking products and services. The group said it recovered around R19.5 million for consumers in 2021.
It said that as fraud continues in the sector, criminal activity has moved online, with cyber fraudsters responsible for the most complaints
Top complaints included internet banking, current accounts and credit cards, which are representative of the fact that fraudsters are targeting individuals through phishing emails and links, and phishing calls pretending to be from the bank staff, said the ombudsman.
“ATM complaints have dropped, and this may be because more consumers purchase goods online. Unfortunately, the criminals will follow the same trend to target their victims and we have seen new scams evolve.”
The report highlighted two recent matters investigated by the ombudsman where two private banking customers fell victim to financial fraud.
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In the first case, a complainant who had a credit card account with a bank paid R30,000 towards the account and received a notification of payment from the bank’s information email address.
“The following day he replied to the payment notification email instructing the bank to close…
