A scam is easy to pull off when a victim isn’t aware of what is happening Photo Pexels
South Africa – As we enter November, people already have their eyes set on the festive period. A time for everyone to get away and enjoy quality time with their friends and family. While there is much to be happy about, there is also a lot to be concerned about as crime increases during the December period.
Crime levels are incredibly high in South Africa, but this is not unique to us. According to Chad Thomas, Organised Crime Expert, most emerging countries and developing countries are experiencing an increase in contact crime. However, what is a major concern, and Thomas believes isn’t getting enough attention, is non-contact crime.
“We are seeing a massive increase in online scams. We are seeing a massive increase in scams using social media. What we realised is criminals are adept at change and ensure their scams are fluid and keeping with the times and current events. These impact businesspeople but a lot of time people who are looking to make their rand stretch.”
The most prolific scams now are those involving palladium and coltan. Two commodities from Central Africa. Others invoice fast moving consumer goods and cement from Europe.
Signs it is a scam
Everyone is looking to end December on a high. Criminals even more so perhaps. Most people have more time on their hands during the December period. They often reply to emails and friend requests they wouldn’t during the rest of the year. It is important to make sure you notice the red flags before it is too late.
“The minute that there are unrealistic returns that are offered. So, we are seeing trends in respect of online investment in Forex and crypto currency. People are promising to double the money in a couple of days. If a person doesn’t understand the investment, then they should invest in the investments. You’ll find that a lot of fraudsters make it sound as complicated as possible so that you just give them the funds thinking that they’re going to be trading on your behalf.”
One of the crimes currently impacting the community is in respect to purported minerals coming from Congo. Fraudsters are approaching businesspeople throughout the country advising them they need a broker for the deal.
“[The] deal generally involves coltan or another precious metal and this person is only going to act in a capacity as having a registered business in South Africa to ensure that all the compliance boxes are ticked. Very shortly thereafter they start asking for money for laboratory results, test results, for transportation, for security and we are finding that each week we are getting dozens of reports of people being taken.”
The fraudsters generally approach a victim who is in a cash-based company. They then build a relationship with this person before the scam takes place. It is not just out of the blue.
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The devastating impact of such crimes
While these crimes are non-contact, it does not mean it doesn’t create the same amount of devastation as contact crimes. In these hard times people are often looking for ways to stretch their rand. These schemes seem good at first but they often end up destroying families.
“The harm it does to families is so divisive. It destroys relationships, friendships and can have a devastating effect on a family. They think they are doing the family a favour and look forward to telling the family and surprising them that they’ve made this wonderful investment when the funds are paid back.”
Oftentimes a quick Google search would show if the investment is a scam or not. Those who come to Thomas do the search after they have invested their money which defeats the purpose of the search. The excitement of a big pay-out clouds one’s judgement and they fail to do the necessary background checks.
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Chances of recouping the money
Once the scam is reported, people are hopeful they will get their money back and the perpetrators caught. Fortunately, South African law allows for financial restitution. This means investigators and the state’s authority can trace the funds and where the funds land up eventually. However, it is a long procedure to go through.
Any potential investment should be Googled and one must make sure they understand the investment and know who they are investing with. It is crucial to do a background check and while it may sound tedious, it is better to be safe than sorry.
