Episode Transcript
[00:00:00] Speaker A: This conversation on 702 is brought to you by Capitech. Slam the scam with Capitech. So as most of Africans turn to digital platforms to buy and sell everyday items, the way transactions are done is changing. And saw the risks. Deposit scams are on the rise, with criminals posing as legitimate sellers, offering deals that seem too good to pass up, and pressuring people into making fast payments for goods or services that don't exist. Joining us now are Nick Harris, head of financial crime at Capitech, and Gene Rousseau, head of CSI and financial education Education at Capitech, to unpack how these scams work, why they're so convincing, and the simple steps that you can take to stay safe. Thank you so much, Nick and Gene, for joining us. I want to start with you, Nick. What exactly are deposit scams?
[00:00:47] Speaker B: Yeah, absolutely. So, so generally what we see this is, this takes place on a variety of digital platforms like marketplace communities, WhatsApp, groups, ox that are designed for trust rights and, and really know you browsing Marketplace, you see something that looks legitimate, the price is looking good, and you're just like, yeah, this is the bargain of a lifetime. It could be a rare item, right? As well, it might be an iPhone, might be a fridge, but it could also be, you know, a comic book collection that we've seen as well. And basically the fraud, still, the scam entices you to make a upfront payment to secure the goods and then they promise to ship it and it never arrives.
[00:01:27] Speaker A: And for some reason, these scams look very convincing. There's good photos, you know, friendly sellers, people that are very keen to help you in this transaction. Gene, what makes deposit scams so hard to spot? I. I suspect it's got to do with how convincing they look.
[00:01:45] Speaker C: Yes.
So what scammers understand and what most of us don't fully appreciate is that our brains are wired to make fast decisions when we feel excited or under pressure. So the fear of missing out on a great feel is a powerful emotion. And scammers deliberately engineer that feeling, the ticking clock. The other interested buyer, the seller, is about to leave town. These are not coincidences, they're techniques that the scammers use. So when we're in that emotional state, we override our own doubt and we think, I know this feels a bit rushed, but I don't want to lose the deal.
So I think what is important is to say and talk a bit more about how, how they do this and, and how they are very deliberate about it.
So they use attractive prices. That's in itself a tool, it creates excitement and urgency and it makes people willing to move fast without thinking or asking questions.
This and, and the surge in digital, in the digital era is also about scale. So a single scammer can run dozens of fake listings simultaneously, targeting hundreds of people at once. And in this physic, in the physical world, a fraud car dealer or landlord has limited reach online. The scam or the same fraud can be deployed at industrial scale with almost no cost.
[00:03:06] Speaker A: Yeah, and Nick, why do scammers specifically target real time payments? And, and I suppose what should we understand about what happens to the money once it leaves your account?
[00:03:21] Speaker B: Yeah, absolutely. So I mean real time payments really is that the scammer wants to get that money as quickly as possible into the bank account. Realtime payments and pay shop transactions as some of us may know it as well, you know, are really designed to land money within seconds.
And generally what you will see is that those accounts are generally mule accounts. So somebody sold it accounts.
You know, mule accounts cost about 150 bucks if you're looking on it on the black market.
And then really they, then it's a rush against time so that that scammer really moves the money out as quickly as they can before you realize that it's fraud and report it. Right, so they'll draw it out in cash or, or they might send it to some of the online gaming platforms or even into cryptocurrency.
[00:04:03] Speaker A: Yeah. And then Jean, please just take us through maybe three practical rules that we should apply before handing over any money on platforms like Facebook Marketplace and similar platforms.
[00:04:15] Speaker C: Yeah, so rule one is check the price if it looks too good and below what you would expect to pay. Slow down. The attractive dealers often debate not the bargain. And scammers use price to create excitement and urgency to make you act before you think legitimate seller prices realistically. So if the deal looks extraordinary, ask yourself why. The second important rule is to check the seller before you respond to a listing. Check the seller's profile. How long has the account existed? Does it have history or previous listings, activities or reviews? A brand new profile with no track record is a red flag. And scammers create fresh accounts for reach all the time. So if the profile was created recently and has no history, rather don't engage no matter how good the listing looks. And then the third one, which is a super important one, is verify the item. So never pay for something you have not physically seen and inspected yourself. Not a photo, not a video.
You need to see it in real life with your eyes and confirm that it's exactly what was advertised. There are often excuses of why you can't see the item or why the seller is suddenly out of town and so they can only ship it without you seeing it. Don't fall for that.
So the rule alone stops the vast majority of scams don't pay before you haven't verified that the item or the listing actually exists.
[00:05:43] Speaker A: All right, let's leave it there. Thank you so much for your insights. That's Nick Harris, the head of financial crime at Capitech, and Jean Row, the head of CSI and financial education, also at Capitech.
