Episode Transcript
Clarence Ford: There's something you need to be aware of because it's increasingly becoming an issue. So you need to listen quite carefully. And this conversation is brought to you by Capitec. Slam the scam with Capitec.
So there are some deposit scams that are becoming increasingly common, especially during peak buying seasons. You've got criminals who pose as legitimate sellers or service providers advertising high-demand items or accommodation and at tempting prices. And these scammers pressure you as the consumer into buying and paying a deposit for something that doesn't even exist. And then they just disappear. But Capitec is stepping in to help.
So today we're joined by Nick Harris, who's the head of financial crime at Capitec, and Jean Rossouw, who is the head of CSI and financial education at Capitec, to chat about how you can stay safe here on 702. Jean and Nick, thank you so much for making time for us. Good morning.
Nick: Good morning. Good morning.
Jean: Good morning. Thank you.
Clarence: Yeah, thank you. So, Nick, let's start with you. What is a deposit scam and why is it a favorite modus operandi for these scammers?
Nick: Yeah, absolutely. I think it's definitely the most popular one that we've seen. If we look at our fraud stats, not just in capita, but in essay in general. And really what we see it is it's when criminals advertise fake items or services and convince our, you know, our clients or victims to pay a deposit to secure these deals. And really, as you mentioned, is that they create this by, you know, creating adverts on places like Marketplace and that for very attractive prices. And this is generally high demand. So things like vehicles, vehicle auctions, iPhones, PlayStations, laptops, appliances.
We saw a huge spike in December around holiday accommodation. So people booking for, you know, seaside front accommodation, Durban, arrive in there and then unfortunately, you know, the accommodation is, is, is, is actually fake or somebody else is sitting in the accommodation. Another big favourite is second-hand furniture and household goods like fridges. And you'll often see these things are associated with urgent sale below market prices. So it makes it very attractive. Right? And what they do is they use actually, you know, stolen photos. So items that have been advertised on, on, on Marketplace and that and before, and even these community groups and they just reuse this. And so it looks like in the legitimate thing that somebody's actually posted, but they now use this to create a illusion of an advert. And really it's a favourite modus operandi is that, you know, that they ask for deposits, they're just small enough to go like, well, you know, I'm buying a car. You know, cars with 80K. But you know, a 2 grand deposit is not too bad to secure it.
High demand items, like I said. And then, you know, digital platforms really create this instant access to thousands of potential victims. So it's such an easy scam to deploy. And really it's this low effort, high reward, and often victims feel embarrassed so they don't come forward, don't report it. And then these guys just keep on scamming people continuously.
Clarence: Yeah, sure. So Jean, why do ordinary consumers still fall for these traps? I mean, even those who never really post anything but simply just search for good deals.
Jean: Yes. I think we must remember that if even careful, digitally savvy consumers get caught because cameras put on human emotions and human behaviour, not technical ignorance.
So people type fall for these scams because of several factors. Firstly, there's the psychological pressure. So scammers would create urgency like I have other buyers ready to pay today. Or scarcity.
There's only one listing left for December accommodation. And then there's the fear of missing out, a rare bargain on a car or a smartphone. Then people also trust in their own actions. So consumers trust what they find themselves. So typically they search for an iPhone 14 second-hand. The listing then appears genuine. Or they browsed cars under 80,000 rand. And scammers target exactly the same filter combinations. Or they look up Plet, Ballito, Umhlanga December accommodation. And the photos look perfect. But what we should remember is that simply searching on platforms like Marketplace expose consumer to scam listings that are deliberately designed to appear in these results. So just because consumers initiated the search, they feel like they're not being targeted. But scammers know that, so they deliberately plant these listings designed to appear in these exact searches. And then I think there's a third factor that's really important is Marketplace credibility illusion. So the platform feels safe because everyone is using it. The profiles look real, the people are friendly and active, and some scammers even boost or pay for their fake ads.
So therefore, pass searches are just as vulnerable as people who are actively posting online.
Clarence: So Nick, what about, you know, signalling desperation and vulnerability online because that, that opens people up to scams, right? I mean, there's a lot of scenarios where, you know, someone will post on a community group and say, hey guys, I'm looking for December accommodation. If anything is available, just, just please send me a WhatsApp. And that's, that's how it often also begins.
Nick: Yeah, absolutely. And I mean, and these guys are so good. I mean, they actually infiltrate actively these community groups, WhatsApp groups or these Facebook pages.
You know, again, so, so again, just because somebody's on that group doesn't mean they legitimate firstly. I mean, and certainly the, you know, when we look at this, the signalling component, so as Jean pointed out is that you know, you, you know, you're almost fishing with the right baits, right? And you're singing to these guys that you're desperate. Right. And so whereas like urgently shows that you're under pressure, you make a decision quicker rather than doing your homework, you might be ready to pay quickly. I mean, last minute December accommodation signals that you're willing to accept a fast deal. And that's exactly what scammers are willing to exploit. Right. And okay, cool, let's get that deposit for you.
They know that you'll respond quickly and often within minutes and you're comfortable to move across platforms. So often they'll move you from right from Facebook into for example, WhatsApp and Telegram.
And really I think your post broadcast this urgent need and limited options and willingness to system that just signals that you, you might be an easy target or easy prey for these scammers.
Host: Yeah. So how do we protect ourselves, Jean? How can consumers recognize these potential scams and, and what practical steps do we take then to protect ourselves?
Jean: So firstly, let's look at the red flags that you need to watch out for.
Firstly, prices significantly lower than similar listings in the case of accommodation, no in person viewing allowed. And typically excuses like I'm traveling or I've relocated or there are people in the accommodation at the moment, I can't take you there.
Pressure tactics is a favourite. I have another three buyers ready to pay. You need to pay now or deposit required immediately into a personal bank account. That's very often also another big trigger and red flag.
New or empty profile with little activity and then these perfectly looking photos, often they're stealing, they're stolen from real listings. And for accommodation, often there's a refusal to do a live video walk through the property. And these are all very, very real red flags. So in terms of how you then can apply practical steps to protect yourself, firstly, never ever pay a deposit before physically seeing these high value goods. For accommodation, ask for a live video tour where the host walks through the property and can show their face so you know that they're in the property.
Then you use reverse image search. This is actually a really good one where you can see where else online. Are these images actually, do they appear so that you know this is a stolen image?
Don't publicly post your phone number or signal desperation. But also don't assume you're safe just because you didn't post.
And then on Marketplace, beat the seller's profile. So age of the account, posts, reviews, consistency of posts, and then I think the last one, really trust your instinct. If it feels too good, if it feels rushed, too convenient, slow down non stop, don't go ahead.
So I think the, the key rule of thumb though, to leave you with is if you haven't seen it, don't pay for it.
Clarence: Sure. Thank you so much for, for those tips. Yeah. Nick and Jean really, really appreciate it. Nick Harris is the head of financial crime at Capitec and Jean Rossouw the head of CSI and financial education at Capitec.
