WhatsApp investment scam warning in South Africa

Standard Bank has warned of a fraudulent WhatsApp group circulating on social media that claims to be affiliated with some of the bank’s services. 

In an email sent to clients, Standard Bank Online Share Trading urged individuals to be vigilant against potential threats. 

“We are committed to ensuring that your trading and investing experiences on our platform are both seamless and secure. However, we must also be vigilant against potential threats,” it said. 

The company explained that recently, a fraudulent WhatsApp group has been circulating on social media and claiming affiliation with an investment app called SBG SI Trader. 

This app falsely professes connections with Standard Bank, SBG Securities, and other related platforms, including SBG Securities Online Share Trading. 

It also mentions the bank’s Financial Sector Conduct Authority operating license and one of the bank’s employees, David Hodnett.

“We would like to alert you that this information is fraudulent. Please remain vigilant to avoid falling victim to phishing scams, cybercrime, or unauthorised access by fraudsters,” the email read. 

“We encourage you to also be cautious of any other social media, email, or phone (WhatsApp or SMS) communications requesting your personal information.” 

SBG Online Share Trading made it clear that it will never ask clients to share confidential account details such as your password, OTP PIN, or bank card PIN through any means of communication.

To stay safe online and prevent security breaches, identity theft, or financial loss, it urged clients to follow these practices –

• Always log out of your trading account when you are done using the platform.
• Avoid using public internet services via your phone or laptop to access your trading account.
• Do not click on any unsolicited links asking you to update your details.
• Avoid following unsolicited links from unknown sources.
• Do not share your personal and trading account details on public platforms or with anyone.
• As crime and fraud are on the rise, report any suspicious activity to the Anti-Fraud and Security department at 0800 222 050 or any phishing scams to [email protected]

WhatsApp-based scams appear to be on the rise in South Africa, with MTN warning clients late last year of attacks on the app that aim to steal information and money or use stolen accounts for criminal purposes. 

Revolut, a London-based fintech firm, reported that 60% of all scam cases reported to it came from Meta Platforms.

WhatsApp scams are becoming increasingly sophisticated and challenging to identify.

Attackers employ various methods, such as phishing and Wi-Fi attacks, to achieve their goals. They often pose as someone the victim thinks they can trust, such as a family member or tech support.

Earlier this year, Standard Bank also warned its clients of a rise in scams exploiting people looking to make significant life changes at the beginning of the year. 

The bank said that these scammers target individuals looking to change jobs, parents trying to find a school for their children, or matriculants going to university.

This warning follows one from the bank late last year, which said that fraudsters and scammers are intensifying their efforts to obtain personal information or credit card details.

The bank also said that fraudsters are intensifying their tactics. It observed several methods being used to deceive ATM users and other vulnerable individuals.

This article was first published by Daily Investor and is reproduced with permission.