Financial wisdom is crucial in these tough economic times. With more and more forex scammers, investment con artists, dubious stokvel operators, data thieves and cold callers ignoring the Protection of Personal Information (POPI) Act, safeguarding your money and your personal data is more important than ever.
What investment scams and bogus offers look like
Lubabalo Satsha, a cybersecurity expert, says that while there are common tricks that catch many people, the world of finance keeps changing. So, we need to arm ourselves with the know-how to spot and steer clear of schemes, even if they're dressed up in fancy finance talk.
He warns, for example, against the increasing danger of scammers who use new fintech products and supposed investment instruments such as Non-Fungible Tokens (NFT), digital currencies and cryptocurrencies to con their victims.
Learning the basics to see through a scam, whether a new or traditional one, is essential. Firstly, trust your instincts, and don’t make impulsive decisions. Simply taking the time to reflect and making a well-considered decision can go a long way in preventing you from falling victim to scammers and swindlers.
The Financial Sector Conduct Authority (FSCA) says the following are usually red flags:
- Unexpected contact. Be wary of calls, emails, and SMSs from strangers. Scammers use the element of surprise to catch you off balance. So, stay alert and trust your gut.
- Pressure and rush tactics. Scammers often try to make you feel like you must act fast. Don't give in to their pressure. Talk to friends, be careful and take your time.
- Too-good-to-be-true offers. If an offer sounds too amazing or promises fast profits, it's probably a scam. Real investment opportunities need careful thought and effort. Stay cautious and do your homework before making a move.
How to protect your personal data
Before sharing sensitive data, verify the product or opportunity thoroughly. Look for official contact information and check up on any company or organisation’s history or seek validation from relevant industry bodies and regulatory institutions, such as the FSCA, says Lubabalo.
He also offers three essential tips to protect your digital activity:
- Use Multi-Factor Authentication (MFA). Adding MFA, for example having to confirm with login details and a cellphone confirmation before entering your bank account, gives you an extra layer of security, making it much harder for hackers to get into your online accounts.
- Build strong passwords and keep them fresh. Keep your accounts safe by regularly updating your passwords and incorporating a mix of characters. Password managers can help you maintain robust, unique passwords for each account.
- Use a secure network. Always ensure you access critical online services, such as your banking apps, through secure networks. Avoid public Wi-Fi connections when you’re doing personal transactions or sharing sensitive data online, as these are much more vulnerable to prying eyes than your network at home.
When it comes to buying online, the South African Reserve Bank has some great advice:
- Check out the vendor. Before you buy anything, take a close look at the online seller. Make sure they're legitimate and look for good reviews.
- Use safe payment methods. Stick with trusted payment methods, don't share credit- card info over email or phone calls, and pick checkout options that keep your data safe.
Whether it's avoiding email tricks, ignoring pushy cold calls, or being a pro at safe online shopping, you can have the power to stop scammers and keep your money safe if you use these tools and strategies.
Learn more about savvy money management in the You & Your Money section of our content hub.
By Oliver Dickson
Oliver is a seasoned broadcaster and writer. He has been published both locally and internationally in Business Day, The Washington Post and Daily Maverick.