January has come and gone, and with it came the financial strain that many South Africans face after the holiday season. With year-end bonuses spent and bills piling up, many people are searching for ways to make extra money to get through the month. Unfortunately, scammers are aware of this and are ready to pounce on those who may be looking for quick and easy ways to make ends meet.
From online investment scams to fake job offers, January is a prime time for fraudsters to target vulnerable consumers. It’s crucial to stay educated and aware of how (and why) scammers are swindling South Africans out of their hard-earned money this month.
The psychology behind scamming
Dr Khosi Jiyane, a clinical psychologist, explains that “poverty and necessity are key drivers behind why many people scam. Then some derive a psychological or emotional ‘high’ or a rush from cheating others. This drives cybercriminals to find more sophisticated ways to scam people, especially during times when financial stress is high.”
According to a recent Kaspersky cyber threats landscape report, phishing attacks using social engineering tactics rose by 29% in the year 2024. These attacks often take the form of fake job offers, where fraudsters create fake job listings promising high-paying opportunities with minimal effort. Victims are asked to pay upfront fees for “training materials” or “administrative costs”, and are inevitably swindled out of their money.
Scammers may also make promises of quick returns through online investment scams to lure individuals into fake cryptocurrency or stock market schemes, only to disappear with their money. They may also pose as legitimate lenders offering easy-access loans to those struggling financially including those with bad credit profiles. Victims often pay “processing fees” upfront and receive nothing in return.
The role of technology in scams
What makes the fraud landscape that much more challenging in the current technology-driven context is how scammers are using advanced technology and are managing to deceive even the most cautious individuals. Fraudsters may use AI-driven tools like voice cloning and spear-phishing emails, for example, to manipulate victims into revealing sensitive information or making financial transactions.
But while scammers are becoming more sophisticated, consumers can take steps to protect themselves. Certain habits, such as reusing passwords, clicking on unknown links, or sharing personal information without verifying the source, significantly increase susceptibility to scams.
How to protect yourself
Momentum Insure Chief Marketing Officer, Shweshwe Tlhapane advises consumers to adopt a cautious and proactive approach to avoid falling victim to scams. “Be sceptical,” says the Chief Marketing officer. “If an opportunity or offer seems too good to be true, it probably is. Consumers must verify the legitimacy of job listings, investment opportunities and lenders before taking any kind of action.”
Other ways to protect yourself from scammers on the prowl this January include strengthening your cyber hygiene; this means changing passwords regularly, using strong, unique passwords and enabling two-factor authentication to secure your accounts.
It’s also important to avoid desperate decisions, adds Shweshwe. “Financial stress can lead to impulsive actions, which is why it’s crucial to take time to critically evaluate opportunities before you commit to anything.”
“The best defence against scams is awareness and this is why Momentum Insure partnered with experts to get deeper into the scams to arm consumers with the right knowledge,” says Shweshwe “By understanding how these scammers operate and being mindful of our actions, we can outsmart scammers and protect what matters most.”
Momentum Insure’s Circle of Safety series provides practical insights and tools to help consumers navigate these challenges and stay financially secure. Watch Seasons 1 and 2 on YouTube for more tips on staying safe online.
Also see: Stay alert at the ATM: Safety tips to avoid being scammed
