New year, new scams: how South Africans can stay safe

As South Africans return from the festive season with renewed energy, many households face the financial realities of a new year.

- STAFF REPORTER

For thousands of families, January is marked by registration fees, textbook purchases, and accommodation deposits for students entering universities and colleges, according to the Southern African Fraud Prevention Service (SAFPS).

It says yet, alongside this excitement, fraudsters are seizing the opportunity to exploit vulnerable consumers."-Continuing from Black Friday and the Festive Season, this is one of the busiest times for scammers. The combination of high expenses and the urgent need for cash makes people more susceptible to scams," says Manie van Schalkwyk, CEO of the SAFPS.

Loan Scams

The SAFPS says fraudsters lure victims with promises of quick loans and guaranteed approval, regardless of credit history. Once an upfront administration or processing fee is paid, the scammers vanish, or worse, harvest personal information to commit identity theft and open accounts in the victim's name.

Red flags include:

"Always remember: if the offer sounds too good to be true, it usually is," says Van Schalkwyk.

Bursary & Scholarship Scams

Education is highly valued in South Africa, and bursaries or scholarships are often seen as critical lifelines. Fraudsters exploit this by charging application fees or promising guaranteed acceptance. Victims may be strung along, losing significant sums while exposing sensitive personal data, it says. Warning signs include: