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05
Wed, Nov

Community News
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Klerksdorp Midweek, Klerksdorp - As South Africans gear up for Black Friday on November 28, the National Financial Ombud (NFO) urges consumers to think twice before swiping their way into a financial hangover.  While seasonal discounts may offer short-term appeal, the long-term consequences of overspending on credit, including high-interest debt and depleted savings, can undermine essential financial goals and lead to post-holiday hardship.
The NFO has also cautioned that digital fraud tends to spike during the year-end holiday season. 

Nerosha Maseti, Credit and Banking Division Lead Ombud at the NFO, said Black Friday, known for  massive sales and long lines, is a shopper’s adrenaline rush with jaw-dropping discounts, limited-time offers, and the thrill of snagging the perfect deal. 

“But beneath the buzz lies a financial minefield. Swipe-happy spending can spiral into credit card chaos, and lurking digital scams are ready to pounce when vigilance slips. 

“To truly win the day, smart shoppers arm themselves with a plan, stay sharp online, and keep their budgets on lockdown. After all, the best deal is one that doesn’t cost your peace of mind,” said Maseti.
 
Impulsive spending
Many South Africans use credit to fund Black Friday purchases, but impulsive spending can lead to unmanageable debt. 

Maseti said the risks of such expenditure include high-interest credit card balances or short-term loans; depletion of savings intended for essential goals like home ownership, education, or emergencies; and financial strain after the holiday season, when unexpected credit card or loan repayments come due, leaving consumers with limited funds for essential living expenses.

Maseti advised consumers to set a spending budget and stick to it; prioritise long-term financial goals over seasonal bargains; and keep credit balances low to maintain financial health.
 
Credit card fraud
The NFO also sounded the alarm on a surge in credit card scams. Fraudsters tend to zero in on Black Friday shoppers using non-bank and store-branded credit cards, especially those tied to big-name retailers. 

“These criminals contact cardholders by phone, impersonating representatives from these companies, and deceive unsuspecting consumers into revealing their confidential One-Time Pins (OTPs) to make unauthorized purchases at large merchants, leaving victims responsible for fraudulent charges.

“While this scam has been known in traditional banking circles for many years, its rising prevalence in the non-bank credit card market is deeply concerning. The NFO is particularly worried that such fraud will escalate over Black Friday with high transaction volumes and increased consumer activity.

“It is crucial for cardholders to remember that no legitimate company will ever ask them to share confidential information such as card numbers, passwords, or OTPs. Providing an OTP to a fraudster can result in the consumer being held liable for fraudulent purchases, leading to significant financial loss without any benefit,” Maseti said.
 
Discounted airline tickets
Fraudsters also continue to target bank customers in new ways. A recent case investigated by the NFO revealed a new trend, with the consumer losing R120 000 after responding to a social media advert offering discounted airline tickets. 

After submitting her phone number and email via a link, she was contacted through WhatsApp and instructed to download an app from the Google Play Store to access promo codes. Though the link appeared secure, the app was fraudulent and embedded with malware.

Soon after installation, the consumer’s phone began overheating and behaving erratically. The unexpected activation of the camera’s green light raised immediate concerns. Upon checking her banking app, the consumer discovered two unauthorised transactions and swiftly reported the incident to both her bank and the police.

Despite her prompt action within just 27 minutes after the transactions, the bank denied liability, citing that the payments had been authorised via selfie-authentication on her trusted device. The consumer escalated the matter to the National Financial Ombud (NFO), seeking a full refund.

Following investigation, the NFO found that the funds had already been utilised before the fraud was reported, leaving no opportunity for recovery. Also, the bank provided evidence that biometric authentication was used to approve the transactions.

Based on the specific facts of the complaint, it was evident that the compromise originated from the consumer’s interaction with a fraudulent third-party app, which contained malware capable of remote access and biometric simulation.

Maseti said no proof was provided that the transactions took place as a result of maladministration or safety and security failures on the part of the bank.
 
Get help from the NFO
The NFO assists consumers with credit and fraud-related disputes involving banks and credit providers. The issues include:
- Fraudulent transactions and unauthorised debit orders.
- Incorrect credit listings.
- Reckless lending or contractual disputes.

Consumers facing challenges are encouraged to contact the NFO on tel: 0860 800 900 or email: This email address is being protected from spambots. You need JavaScript enabled to view it..
 
“By downloading the fraudulent app, the consumer essentially handed over her phone, including all the information stored on her phone, to the criminals and this resulted in the fraud. The NFO accordingly could not conclude that the bank was liable for the consumer’s loss,” she said.

Anti-fraud tips
To protect against mobile app scams, Maseti gave the following tips:
- Never share your OTP with anyone, even if they claim to be from your credit provider.
- End suspicious calls immediately and contact your credit provider directly using an official phone number and not the number provided by the scammers.
- Be sceptical of social media promotions.
- Verify legitimacy: Check official airline websites or verified social media accounts before engaging.
- Avoid sharing personal info: Never post your phone number or sensitive details publicly.
- Think twice before downloading apps.
- Use trusted sources - only download apps from verified developers with strong reviews and a high download count.
- Monitor your bank accounts closely.
- Check transactions daily, especially after suspicious activity.
- Report fraud immediately to your bank and file a police affidavit if needed.