What To Do If You're A Victim of Fraud or A Scam in South Africa

Con artists have always developed new ways to defraud as long as there has been money. Whether you've been the subject of a phishing scam, had your card swiped, been duped by a spouse or lover, or been the victim of a SIM swap, it's a very personal crime that leaves you confused of how to respond.

Scammers are adept at deceit, misdirection, and plain lying, to the point that they can persuade most victims into unknowingly supporting their own loss.

According to SABRIC CEO Kalyani Pillay, the problem is mainly caused by the human component rather than the technology. Scammers are masters of social engineering, and they utilize it to influence their victims in order to obtain the information needed to perform most fraud-related crimes.

“Criminals are continuously seeking for new methods to use digital platforms to defraud victims,” adds Pillay. “However, banks' mitigation techniques are highly robust, so it's simpler to target people because they are the weakest link.”

The conditions determine how you behave in the aftermath of a fraud. However, according to attorney Ayanda Katjitae, partner at SKM Attorneys, “your actions may be essential in the recovery of all or any money.”

“Fraud is defined in South Africa as ”the unlawful and purposeful making of a false statement that causes real or potential disadvantage to another.“ The phrase is being used in its broadest sense, and it is meant to cover all facets of economic crime and dishonesty ”Katjitae expresses her opinion.

Although the legal definition of fraud is wide, it has four distinct elements: illegality, deception, purpose and bias.

What should you do？

There is no single uniform response to the vast array of frauds and crimes that are presently circulating throughout the globe. Given that not everyone can pack a bag full of the scammer's luxury clothes and flee the scene, how you react immediately after the occurrence may have a direct influence on your chances of getting your money or belongings back.

1. If there is an immediate risk, contact the authorities.

It's vital to contact local authorities if a crime is taking place and you or someone else is in risk. The South African Police Service (10111), professional security firms, and even neighborhood watch organizations might be able to help.

Even if the offense isn't serious, Katjitae emphasizes the need of reporting it to the authorities.

“It's critical to report the fraud to the local police station with jurisdiction,” Katjitae advises, “and to submit full details in affidavit form, as well as all supporting paperwork that can substantiate the crime.”

2. Get in touch with your bank

As soon as you realize what's happened, call your bank's fraud prevention department. If you wired money to someone, notify the fraud department of that company right away. If you used bitcoin to pay, your best chance is to contact the firm that sent the money to you.

A consultant will deactivate your cards and prevent subsequent transactions from taking place, perhaps limiting further damage. Many banking applications now offer a feature that allows you to quickly disable a card in the case of theft or fraud.

The importance of time cannot be overstated. You may be eligible to submit a chargeback if you've been the victim of credit card fraud, but you must do so within 120 days.

Even if the sum is tiny, it pays to remain attentive with your accounts. Before making a large transaction, fraudsters will verify the validity of a credit card with small, often imperceptible sums in certain card skimming incidents. It may be too late at that point.

3. Contacting other organizations

It's also important to alert appropriate organizations if you feel you've been a victim of identity fraud, according to the Banking Association of South Africa. According to the organization, you should contact your bank, insurance provider, and other institutions where you may be a customer to report any unusual activity.

If you feel your identity has been stolen or your bank account has been hacked, you must immediately place a credit freeze in your name. You can do so by calling the credit bureaus in South Africa.

4. Make a list of all your passwords and change them all.

To be secure, change your passwords for all online accounts, including email, social media, and your banking profile. Even if a criminal gets access to your personal information or even your mobile device, they may still be able to make transactions and transfer money.

5. Contact the Fraud Prevention Service of South Africa.

If you've been a victim of identity theft, the South African Fraud Prevention Service (SAFPS) is a useful resource. SAFPS may be reached by phone at +27 - 11 867 2234 or by email at for assistance with fraud prevention, financial fraud and crime, and assistance if you have been a victim of impersonation or fraud.

6. Seek emotional help

Scams and fraud are personal crimes that can be extremely upsetting, but there are people and organizations who can help with the emotional upheaval.

Many private practice therapists and counsellors in South Africa are well-equipped to assist victims of all sorts of crime.

Call the South African Depression and Anxiety Group if you're not sure who to contact (SADAG). They have qualified specialists on hand to aid with panic attacks, anxiety, trauma, and PTSD, as well as a variety of other mental health issues that may arise as a result of the crime.

SADAG may be reached at +27 - 800 567 567.

Recovering your funds

From the financial institution

Unfortunately, getting your money back might be difficult, especially if your bank can show you gave over critical information like one-time codes or credit card numbers, or transferred millions to a stranger you met online without leaving a paper trail.

How you go about retrieving what's really yours, according to Katjitae, depends on the circumstances, such as “whether the fraud was connected to you entering into a contract, online payment, investment and securities fraud, or identity theft.”

“In situations involving banks with their own fraud departments, the fraud may be reported straight to them so that they can examine the unauthorised transactions or associated fraud,” Katjitae explains.

This method comprises giving all necessary data in favor of your complainant to the bank, which the bank will examine while making a decision.

“The bank may accept your fraud claim and compensate you, usually ex gratia, or they may reject it. If they deny your claim, you have the right to register a complaint with the Banking Ombudsman, who will investigate the case further ”Katjitae clarifies.

Thanks to the help of the Ombudsman,

The Ombudsman for Banking Services (OBS), an independent institution, handles individual complaints about banking services and products.

All of South Africa's respected banks are members of the OBS, and if the complaint falls within the Ombudsman's authority, the OBS will investigate it and provide a judgement at no cost to the complainant.

There's no assurance that the decision will go in your favor, and if the bank considers the consumer doesn't have a good case, the Ombudsman's procedure may be completed. Banks, on the other hand, may agree to a settlement before the complaint goes through the complete procedure in specific situations.

It's a procedure that is largely dependent on the merits of the case, but it's a feasible alternative to pursue if your bank refuses to bend. The Ombudsman will collect R16 million for banking consumers in 2020. Fraud had the most important impact in the growth in current account complaints during this reporting year, according to the OBS. Although the Ombudsman's office cannot legally hold banks liable for consumers' losses in many cases, it has previously ruled in favor of victims, even if they were partially at fault.

On the OBS website, you can file a complaint with the Ombudsman for Banking Services.

directly from a con artist

Getting your money back from a third-party or swindler who isn't regulated by an Ombudsman's office can be difficult and expensive, according to Katjitae. It's also critical to follow the proper procedures to prevent any unfavorable legal or other consequences.

As a victim, you may be able to file criminal charges against the perpetrator, civil charges to recover any lost assets or funds, or both. In either of these situations, it's important to seek legal advice from an experienced attorney.

“Civil procedures against the fraudster are the most effective but expensive option for recovering assets and money, and such processes can be aided by injunction motions to freeze the stolen monies' bank accounts,” Katjitae explains.

If you pursue this procedure, you will need to show the elements of fraud in both criminal and civil actions to be successful.

“As a result,” Katjitae argues, “it is advisable to get legal guidance before reporting or filing fraud claims to ensure that accurate information is supplied and no culpability for carelessness is acknowledged.”