A significant increase in fraud is being recorded as criminals take advantage of a risk-heavy environment, says the Southern African Fraud Prevention Service (SAFPS).

“This is particularly concerning given the economic climate we are facing,” said CEO Manie van Schalkwyk.

“Consumers are facing a significant cycle of high inflation and are looking for ways to make ends meet. This makes them increasingly vulnerable to scams and schemes.”

Comparing the first five months of 2022 with the same period in 2021, the service said the risk of money muling has increased by 97%.

This is when a person approaches someone else and asks them if they can use their account to send money to a relative in another country.

“While this should immediately be a red flag, you will be surprised by how many people willingly comply in the hope they can be of assistance,” said Van Schalkwyk.

“Unfortunately this opens the door for fraudsters to take significant advantage of their victim.”

To prevent this Van Schalkwyk urged people to be very protective of their banking details.

“The person in front of you may be in genuine need. However, they may also be fraudster.”

He said biometrics is adding an extra sophisticated layer of security to try to prevent financial crime from taking place. However, this makes fraudsters more insistent and increases the level of involvement from the public.

“Impersonation has always been a significant crime in SA as fraudsters prey on their victims through phishing, smishing and vishing. Impersonation increased by 264% for the first five months of the year compared to 2021 and could be linked to recent major data breaches.”

Forged documentation is also soaring.

The service said SA has one of the highest reported unemployment rates in the world at 34.5%.

“In an effort to increase employability, we are seeing a rise in false qualifications, which has increased by 158% over cases reported in 2021.”

Gauteng is the economic hub and the province with the highest fraud stats. The province makes up 62% of the country’s total fraud incidents. The number of fraud incidents recorded in 2022 increased by 117% over the number of incidents reported in 2021.

The Western Cape, which made up 8% of the country’s total fraud incidents, recorded a 133% increase.

KwaZulu-Natal contributed 18% of the fraud incidents in 2021. The SAFPS said the number of incidents reported there this year increased by 106%.

The service offers consumers free protection tools against fraud.

TimesLIVE