As South Africa observes Money Smart Week South Africa (MSWSA) on August 24-30, the National Financial Ombud Scheme South Africa (NFO) is encouraging consumers to strengthen their financial knowledge and remain vigilant against banking fraud.
With banking scams becoming increasingly sophisticated, the NFO says consumers who understand their rights and responsibilities are better equipped to protect themselves from financial loss.
Know Your Rights as a Banking Customer
The NFO reminds consumers that they have the right to receive clear, honest and timely information about banking products and services. Banks are expected to treat all customers fairly and without discrimination, regardless of their income or background.
Where financial advice is provided, banks should consider a customer’s personal circumstances, financial goals and needs before making recommendations. Consumers are encouraged to ask questions whenever they do not understand banking products or agreements and to read all terms and conditions carefully before signing.
Understanding Your Responsibilities
Consumers also have important responsibilities when managing their finances. This includes providing accurate information when applying for bank accounts or credit, ensuring they understand their repayment obligations, and informing their bank as soon as possible if they experience financial difficulties.
Stay alert to banking frauds,
The NFO warns that fraudsters often impersonate bank officials to trick customers into revealing sensitive information.
If you receive an unexpected phone call claiming to be from your bank, end the call immediately and contact the bank using the official number printed on your bank card or listed on its official website.
Consumers should remember that banks will never ask customers to:
- Make a specific payment or transaction.
- Create a new beneficiary.
- Reveal their PIN, password, One-Time Password (OTP) or card details.
- Scan QR codes sent by callers.
- Download remote-access applications such as AnyDesk.
Scammers frequently create a false sense of urgency to pressure victims into acting without thinking. Consumers are urged to remain calm and verify any requests independently.
Be careful when transacting online
The NFO also advises consumers to be cautious when engaging with promotions on social media.
Before responding to special offers or competitions, verify that they originate from official websites or verified social media accounts. Avoid sharing personal information publicly and remember that if an offer appears too good to be true, it probably is.
When downloading mobile applications, consumers should only use trusted app stores, verify the developer’s identity and carefully review the permissions requested by the application, particularly where access to contacts, cameras or banking information is involved.
Beware of Phishing Attacks
Consumers should never click on links in unsolicited SMS messages or emails requesting them to update personal information or log into online banking.
The NFO stresses that banking passwords, PINs and OTPs should never be shared with anyone, including family members or individuals claiming to represent the bank.
Protect your Digital Banking Profile
Criminals can create virtual bank cards if they gain unauthorised access to a customer’s online or mobile banking profile. This often happens through phishing websites, malicious software or weak passwords that have been exposed in data breaches.
Once access is obtained, fraudsters may create virtual cards, make unauthorised purchases or link the cards to digital wallets and subscription services.
Consumers are encouraged to use strong, unique passwords, secure their devices and report lost or stolen phones immediately so their banking applications can be disabled.
Know exactly what you’re paying for
Banks are required to clearly disclose all fees, charges and interest rates before customers sign any agreement.
The NFO encourages consumers to review their bank statements regularly, understand the costs associated with their accounts and compare banking products to ensure they receive the best value.
You have the right to switch banks
Consumers are free to move their transactional accounts to another bank if they are dissatisfied with the service they receive.
Banks should provide reasonable assistance during the switching process and ensure that vulnerable customers, including elderly persons, people with disabilities and financially inexperienced consumers, receive the support they need.
Monitor your accounts consistently
Regularly checking account balances, statements and transaction alerts can help consumers identify suspicious activity quickly.
Customers should also ensure that their bank always has their latest cellphone number, email address and residential address so that important notifications are received promptly.
Resolve Complaints Through the Right Channels
Consumers who believe they have been treated unfairly should first use their bank’s internal complaints process.
If the matter remains unresolved, they may approach the National Financial Ombud Scheme South Africa (NFO), which provides free, fair and impartial dispute resolution services to consumers.
Learn about the Code of Banking Practice
The South African banking industry subscribes to the voluntary Code of Banking Practice, which outlines both the rights of banking customers and the responsibilities of financial institutions.
Consumers are encouraged to familiarise themselves with the Code to better understand what they can expect from their bank and how they can safely manage their banking relationships.
As Money Smart Week South Africa continues, the NFO says improving financial literacy and remaining vigilant against fraud are essential steps towards building financially resilient households and protecting hard-earned savings.
