OPINION | Beware of becoming a for online scams this Easter holidays

SA has been witnessing a rise in online scams, driven by advancements in artificial intelligence (AI) and digital manipulation.

Fraudsters use AI tools, including deepfakes and sophisticated phishing techniques, to deceive unsuspecting individuals. These cybercriminals often impersonate reputable companies and trusted individuals to lure victims into fraudulent investment schemes promising high returns.

While these scams occur throughout the year, they become rife during holiday periods, particularly Easter and the festive season, when consumers are more likely to have disposable income, making them prime targets.

Scammers are taking advantage of unsuspecting investors by promoting fake online trading platforms and offering unrealistic returns on investments. Such platforms tend to be well-designed apps bearing fictitious company brand identity and names of executives to lure unsuspecting victims.

It’s crucial to keep in mind that no company will ever trade in shares directly with investors. It’s a good idea to always verify any investment opportunities through official financial institutions and the stock market on which the company is listed. It’s also a good starting point to talk to a financial adviser or a banker for guidance, as investing can be a life-changing decision.

According to Investec, cybercrime is set to cost the global economy as much as $10.5-trillion (R206-trillion) annually by this year, with online scams being one of the major contributors to this crisis. Phishing and spear phishing attacks are among the most common threats: deceptive emails and messages designed to trick individuals into revealing sensitive information or clicking on malicious links, often using personalised information that makes them seem credible.

In more advanced cases, AI-powered deepfake technology – which uses AI to create convincing but fake images, videos, and audio – is enabling scammers to impersonate company executives or trusted individuals to further convince victims of their legitimacy.

The Southern African Fraud Prevention Service reported a worrying 32% increase in fraud incidents in 2024 alone, with scams affecting individuals across all demographics. According to its research, scammers tend to be more active during periods of increased consumer activity, making it essential for consumers to recognise potential scams and understand the preventive measures available.

Banking scams also surge during holiday periods. Reports from the National Financial Ombud Scheme (NFO) indicate that bank-related fraud complaints have been and continue to be the biggest contributors to formal complaints opened at the NFO’s banking division. In 2023, NFO data showed that of the 8,521 formal cases opened at the Ombudsman for Banking Services for the year, a staggering 43.47% (3,380 cases) were categorised as fraud.

Social media has become a powerful tool for scammers, enabling them to communicate at speed, target large numbers of people and cultivate trust while operating anonymously. They create fake profiles and exploit unsuspecting victims through impersonation of legitimate brands, fake gift exchanges, discounted gift card offers and non-existent holiday packages.

While younger generations, particularly Gen Z, may be more frequently targeted through social media-based investment scams, older adults are typically at risk from phone-based or email scams. These criminals exploit generational vulnerabilities, tailoring their scams to the habits and concerns of their victims.

For instance, Gen Z’s affinity for online shopping makes them susceptible to counterfeit websites and fake product listings, while millennials face an increasing number of tax season and job offer scams. On the other hand, older generations may fall victim to fraudulent healthcare product offers or investment schemes that promise large returns on retirement savings.

As criminals continue to evolve their tactics, the government, corporates and NGOs must work together. Police minister Senzo Mchunu and stakeholders, including Business Against Crime, have recently signed a pledge of commitment to combat crime and address its root causes. This is a step towards the right direction, and a show of commitment to address crime in general.

In the meantime, everyone must be vigilant to ensure that the upcoming Easter period remains a time for celebration and safety, not one overshadowed by the financial and emotional impact of fraud.

• Mulibana is external communications manager at Anglo American SA