As more South Africans turn to digital platforms to compare, buy and manage financial products, scammers are getting better at mimicking legitimate providers. What once looked suspicious is now often well-designed, well-worded, and increasingly difficult to distinguish from the real thing.
The Financial Sector Conduct Authority continues to warn consumers about impersonation scams, fake investment schemes and unregistered financial services providers, with victims often only realising something is wrong after money has been paid or personal information has already been shared.
Edward Wallace, Head of FinTech and Digital at financial services provider The Unlimited, says the rise in digital access has created a double-edged sword for consumers. “Online access has made financial services more convenient than ever, but it has also made it easier for bad actors to operate,” he says. “Scammers rely on urgency and confusion. They want people to act before they’ve had time to stop, ask questions and verify what they’re seeing.” He adds that in an environment where trust is low, even legitimate providers are sometimes questioned, which makes it all the more important for consumers to know what to look for.
Wallace encourages consumers to use five specific checks before engaging with any financial services provider online. The first and most important check is whether the provider is properly licensed. In South Africa, any business offering financial services must be registered with the relevant regulator. The Unlimited, for example, is an authorised Financial Services Provider with the FSCA under FSP No. 21473. Wallace notes that if a company cannot provide a valid registration number, that is a clear red flag.
The second check involves the underwriter. A legitimate financial product should clearly state who the underwriter or insurer is, because the underwriter is the licensed entity carrying the insurance risk and backing the policy. If that information is vague, missing or difficult to find, Wallace advises proceeding with caution. The Unlimited’s products, he notes, clearly identify the underwriter in the policy wording, with relevant underwriter details visible on its platforms.
The third check is verification of the official website and contact details. Fraudsters often pose as trusted brands or build fake businesses that look convincing online. Wallace recommends checking web addresses, spelling, contact details and email domains carefully, and ensuring they align with the company’s official channels. If anything feels inconsistent or difficult to verify, he says, do not continue or share personal information.
The fourth check involves payment requests and approvals. Wallace urges consumers to take their time when accepting payment requests, debit order approvals or DebiCheck prompts. Before accepting anything, he says, make sure the company name, amount and payment terms match exactly what you agreed to. If anything looks unfamiliar or unclear, stop and verify it directly with the provider through its official channels.
The fifth check is looking for consistency beyond the first impression. A legitimate provider should be easy to trace across multiple platforms, including consistent contact details, credible media coverage, regulator listings and a visible business presence beyond a single website or profile. Wallace notes that scam operations often look convincing at first glance but do not hold up when you dig deeper.
“Scam operations are designed to look real on the surface, but they rarely stand up to basic checks,” Wallace says. “A legitimate provider should be easy to verify and easy to contact. Taking a few extra minutes upfront can prevent significant financial loss.”