Payment and property fraud remain major concerns in South Africa, affecting businesses, buyers, sellers, tenants and property professionals. Addressing these issues requires vigilance and coordinated action from banks, organisations, and individuals.
Payment Fraud: Shared Responsibility
Ryan Mer, CEO of eftsure Africa, a Know Your Payee™ (KYP) platform provider, explains that while banks have implemented security measures such as two-factor authentication and transaction monitoring, challenges persist. Legacy systems, identity theft, and gaps in verification create opportunities for fraudsters.
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A key vulnerability is that account numbers are not always matched with account names during payments, allowing funds to be diverted. Even matching accounts with names isn’t foolproof, as criminals can open fraudulent accounts using stolen documents or trade under different names. Banks may flag unusual activity, but businesses must also maintain strong internal controls.
While safeguards like account verification services exist, they are often manual, costly, and applied inconsistently. Instant payments exacerbate the risk, as funds may clear before errors are detected. Mer advises businesses to enforce KYB checks, verify suppliers before onboarding, and implement strict approval processes. “Leaving full responsibility with banks is a massive risk. Security is a shared responsibility,” he says.
Real estate fraud: Increasingly sophisticated scams
Fraud in the real estate sector is also on the rise. Grahame Diedericks of Lew Geffen Sotheby’s International Realty warns that con artists exploit technology, phishing emails and email interception to target attorneys, agents, buyers and sellers.
Eduan Milner of Eduan Milner Attorneys describes scams where fraudulent emails, often nearly identical to legitimate addresses, instruct buyers or conveyancers to transfer funds into fake accounts. If successful, victims lose money, may breach contracts, and become liable for damages. Fraud can occur at any stage, even after a sale is cancelled, and syndicates may impersonate agents, sellers, or attorneys to defraud buyers.
Buyers can also face liability if they misrepresent information or omit critical property details, affecting sellers financially. Rental transactions are not immune, with risks from fraudulent landlords or unverified listings. Diedericks advises never to take a property sight-unseen, transfer deposits without verification, or appear desperate, as fraudsters exploit urgency.
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Protective Measures
Experts recommend:
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Verify all clients, suppliers, and payment instructions personally.
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Independently confirm bank account details with the bank.
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Never transfer funds to accounts that are not verified bona fide parties.
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Confirm estate agents through the Estate Agency Affairs Board.
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Avoid replying to suspicious emails; create new emails using verified addresses.
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Be alert to red flags: spelling errors, sudden changes, tight deadlines, or unusual contract terms.
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Whenever possible, sign critical documents in person and verify banking details.
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Ensure property professionals are insured and affiliated with recognized brands.
Diedericks emphasizes appointing accredited professionals who maintain up-to-date systems to detect fraud. Milner adds: “Follow your instincts, always verify, and if you fall victim, contact your bank’s fraud department immediately - they may be able to stop the payment.”
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Payment and property fraud are complex, evolving threats. Combating them requires coordinated action, robust internal controls, and constant vigilance. By combining technological safeguards, proper verification, and expert guidance, individuals and businesses can significantly reduce their risk.
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