Voucher fraud warning in South Africa

Nedbank has warned consumers and businesses to stay vigilant against the growing threat of voucher fraud. This type of fraud uses fake or stolen vouchers to scam people out of money or personal information.

In today’s digital age, where enticing offers are just a click away, voucher fraud is a growing threat that consumers must stay alert to.

Consumers may be tempted by vouchers and gift cards with incredible offers. However, these offers could be fake and cost individuals and businesses dearly.

“Cybercriminals keep coming up with new scams to target all kinds of digital transactions, including the many vouchers now sold online,” the bank warned. The financial impact can be immediate if you fall victim to a voucher fraud scam.

For example, if you buy a fake voucher for something essential like electricity, you’ll pay twice just to keep your power on, and you could also give the fraudster access to your banking information.

“If they can trick you into revealing personal details, they may be able to access your online banking profile and wreak havoc on your finances.”

The dangers of voucher fraud and gift card scams are not limited to personal finances. They also pose a threat to businesses.

If a fraudster pretending to be your business sells scam vouchers or gift cards using your branding, your company could suffer reputational damage.

“Even though your business isn’t behind the scam, repeated fraud in your name will undermine trust in your legitimate promotional activities.”

“Voucher fraud also harms businesses in other ways. If vouchers are stolen and the voucher vendor is found liable for the security breach, the vendor may have to refund the customers who originally bought the vouchers.”

Another expense affecting the bottom line is the resources spent investigating and mitigating fraud. In extreme cases, businesses may even honour fake vouchers to prevent further reputational damage.

What is voucher fraud

A store issues gift cards and gives you a particular value to spend on anything in the store that you like. Conversely, vouchers are usually issued for a specific product or service at a set price, often including a discount.

“You can buy retail vouchers for major chains selling groceries, fashion, tech devices, hardware or building supplies, shopping vouchers to spend on digital shopping platforms,” Nedbank said.

These include platforms like Takealot and Amazon, restaurant vouchers for meals at popular fast-food chains, and travel vouchers for flights and accommodation from airlines and travel companies.

“Some businesses, including banks, also offer vouchers for products and services as a reward or as part of a promotion.”

However, gift cards and vouchers can be used as bait in voucher fraud because scammers also sell fake gift cards online.

Scammers try to sell you fake vouchers or steal your legitimate voucher codes to get free access to a product or service you’ve paid for.

These fraudsters also try to steal consumers’ personal information to gain unauthorised access to their card details and digital banking profiles.

Nedbank said that knowing how voucher fraud works, taking precautions, and spotting a crooked offer can reduce vulnerability. Voucher fraud can take several forms, and fraudsters use increasingly sophisticated techniques.

One common method is duplicating vouchers, where criminals make multiple copies of a legitimate voucher to use or sell fraudulently.

Another technique involves creating fake vouchers designed to look authentic, deceiving consumers and businesses.

Additionally, scammers may alter the details of a genuine voucher, such as changing its value or expiry date, to extend its use or increase its worth illegally.

Nedbank advised that there are several types of voucher fraud that consumers should be aware of. One common tactic is phishing scams.

This is where fraudsters send emails or messages attempting to trick people into handing over voucher codes shortly after purchase.

Fake giveaways are another technique in which scammers promise high-value vouchers in exchange for personal information, only for the vouchers to turn out to be fake.

On social media, fraudsters often pose as individuals reselling legitimate vouchers from trusted vendors at discounted prices, but these, too, are typically counterfeit.

Some criminals create clone websites that closely mimic legitimate retailers’ homepages and branding. These sites are designed to deceive users into using their vouchers, which are then stolen.

Lastly, fake vouchers can also serve as malware carriers. Clicking on them could download harmful software onto a device, compromising its security and the user’s private data.

How to guard against voucher fraud

Nedbank urged people to contact their bank if they suspect voucher fraud. Since voucher fraud is often difficult to trace, it significantly threatens individuals and businesses.

To avoid falling victim to this type of fraud, the bank encouraged consumers to read their digital banking notifications carefully before approving anything.

“If you suspect voucher fraud or receive a banking notification for a voucher you didn’t buy, contact your bank immediately,” it said.

“Likewise, if your phone is lost or stolen, you must contact your bank to deactivate any banking apps and protect your digital banking from thieves.”

Nedbank added that there are some red flags customers should look out for to avoid voucher scams. One major warning sign is receiving unexpected vouchers via email or SMS, especially if you haven’t purchased anything.

Another is being prompted to click on suspicious links or provide personal information in exchange for a voucher. Additionally, offers that seem too good to be true should raise alarm bells.

For example, be wary of promotions claiming that major retailers like Apple, Makro, Game, Pick n Pay, or Takealot offer iPhones for R69 in exchange for answering a few questions on Facebook. These are almost certainly scams.

To protect yourself, Nedbank said to take the following actions when you suspect a voucher fraud attempt:

• Verification: Always verify the source of the voucher. If in doubt, contact the company that is allegedly offering the voucher directly.
• Don’t click suspicious links: Avoid opening links in unsolicited messages – especially if you move your cursor over the address and the URL appears as a random string of letters and numbers.
• Stick to secure websites: Ensure that the website offering the voucher is secure (look for ‘https’ at the start of the URL and a padlock icon).

It should be noted that this fraud is not linked to specific banks, and that all South Africans can be affected.

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