Klerksdorp Midweek, Klerksdorp - Stay sharp and alert with your money as the end of the year approaches! Scammers are on the, look out for any opportunity to get their hands on your hard-earned money. These words of caution come from John Manyike, Group Head of Financial Education at Old Mutual, who says the use of passwords and biometrics may be making people complacent about their security. “You still need to be alert to suspicious activity and, if you think your accounts have been compromised, act immediately,” he warns.
“The recent case of a well-known public figure having their bank accounts cleaned out after their cell phone was stolen should serve as a warning about the ease with which crooks can literally bankrupt you within hours,” Manyike says. According to a social media post by the individual, they initially thought they were simply unlucky to have lost their cell phone to muggers, but only realised the severity of the situation two days later when they discovered that their savings account had been wiped out and their credit cards maxed out to a limit of R500 000.
Manyike notes that the festive period is a time when criminals are particularly active. “It’s when you’re relaxed that you are most vulnerable,” Manyike says, offering the following suggestions:
- PINs and passwords: Do not use PINs and passwords that can be easily guessed or gained from your personal details. “If your birthday is on the 15th of June and you use 1506 as a PIN, you are asking for trouble,” Manyike says. Never carry a list of passwords and PINs anywhere on your person and never disclose personal information, including passwords and PINs, when asked to do so by anyone by phone, messaging or email.
- Cell phone safety: Cell phones are a gold mine of personal information, including apps, messages, emails, and stored documents and pictures. “It’s surprising how casual people are with their phones, considering the information that’s stored on them,” Manyike says. If your phone is lost or stolen, it’s vital that, no matter how secure you think the phone might be, you contact your bank immediately to freeze your accounts. You can also report the loss to the South African Banking Risk Information Centre (SABRIC) to prevent identity fraud.
- Credit card safety: It’s important to contact your bank immediately if a credit card is lost or stolen. Ensure that daily spending limits on your bank cards are high enough to enable you to do your festive shopping but low enough to prevent a “wipe-out” if a card gets into the wrong hands. It may also be wise to disable the tap-and-pay feature, which lets anyone with the card make purchases of up to R500 without a PIN.
- Large Cash Withdrawals by Stokvels: Stokvels tend to cash in on their pooled stokvels contributions at the end of the year. Criminals target stokvels during their gatherings when they dispense cash to their members. Stokvels should be encouraged to distribute their funds through electronic fund transfers to reduce the risk of armed robberies” Manyike advises.
- Kidnapping Syndicate Trend: A concerning trend is the rise in kidnapping syndicates. Criminals abduct victims, force them to reveal their PINs, and drain their accounts before releasing them. This alarming trend underscores the importance of heightened vigilance, especially when driving alone.
