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Part 1: Six internet payment fraud schemes you need to watch out for

by , 10 September 2013
I recently read an article about internet payment fraud. It said that the Ombudsman for banking services reported a 3% rise in internet payment fraud cases. And an 8% increase in cellphone banking fraud cases.


Knowing the numbers is great, but you need to understand the different types of internet payment fraud out there, so your business doesn't become a statistic.

Keep reading for the six internet payment fraud schemes you need to watch out for...

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Six internet payment fraud schemes you need to watch out for

1.    Phishing and SARS refund scams: Criminals front as SARS (or a similar organisation). They send you an email stating they want to make a payment to you. They request your banking details. The criminals fronting as SARS (or other entity) then fraudulently transfer money out of your bank account.

2.    Deposit scams: A criminal deposits a fraudulent cheque into your account. He then asks you to transfer the money to his account. When you transfer the money, the cheque bounces. And you've already paid the criminal!


3.    Spoofing: Criminals set up impersonator sites to steal your banking details. They create fake websites that look like the real deal. When you buy something from their site, the criminal behind the website captures your details.  

4.    Cellphone SIM card swaps: Criminals phone your cellphone provider and pretend they're you. They do a SIM swap and then intercept your One Time Pin and change your pin and online banking password. They can make payments and change passwords without drawing any attention to the transaction until you realise your online password has changed, or there's money missing.

Keep reading for two more internet payment fraud methods…

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5.    Key loggers and Spyware: This technique tricks you into installing a fraudulent application on your computer. This software captures everything as you type on your keyboard (including usernames, passwords, banking details, etc.). The application sends your personal details to the criminal.

6.    Social Engineering: A criminal manipulates you to get you to share confidential information with them. They then use it as part of a bigger scam i.e. a scammer gets your full names, ID number, and address. They pretend to be a legitimate organisation. They can then use this information to access other personal information.

You now know about the six types of internet payment fraud. Keep an eye out for part 2 of this newsletter, where we give you the solutions to safeguard your company from internet payment fraud.

Until next time,

Philip Rosenberg
Product Manager, Practical Accountancy Loose Leaf Service

PS: Have you checked out Chapter I03: Internet Payments: Internal Controls for the A-Z of enduring internet payment fraud? Don't have a copy? Click here.





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