Guard Your Identity, Secure Your Future

In today’s digital world, protecting your personal and financial information has never been more important. Fraud and identity theft can cause lasting damage to your finances, credit score and peace of mind. Whether it’s a hacked account, a stolen credit card number or a full-blown case of identity theft, the consequences can be devastating. Safeguarding your money requires vigilance, awareness and the smart use of modern security tools. In South Africa, scams such as phishing, vishing (voicemails trying to get information) and ATM fraud remain common, making it vital to understand how these crimes happen and how to protect yourself.

What is fraud and identity theft?
Fraud occurs when someone uses deception to gain access to your money or assets. Common examples include credit card fraud, where unauthorised purchases are made on your account; phishing scams, which use fake emails or messages to trick you into revealing information; and investment or loan fraud, where scammers promise unrealistic returns or offer loans under false pretenses

Identity theft takes this one step further. It happens when someone steals your personal details - such as your ID number, bank information or login credentials and uses them to impersonate you. This can lead to new credit accounts being opened, bank accounts being drained, false tax returns filed to receive your refund and lasting damage to your credit score and financial reputation.

The financial impact
The effects of identity theft can be severe and far-reaching. Fraudulent accounts or missed payments can destroy your credit rating, while stolen savings or retirement funds may be difficult to recover. Victims often face months of frustration and expense trying to restore their identity and financial records. In some cases, a tarnished credit report can even lead to loan refusals or affect employment opportunities.

Warning signs to watch for
There are several red flags that may indicate fraudulent activity. Be alert if you notice unexpected charges or withdrawals, bills or statements you don’t recognise, calls from debt collectors about unfamiliar accounts, sudden drops in your credit score or notifications about failed login attempts and password resets.

How to protect yourself
Strengthen your digital security: Use strong, unique passwords for every account, combining letters, numbers and symbols. A password manager can help you store these safely. Enable multi-factor authentication (MFA) on key accounts like online banking for extra protection. Keep your devices updated with the latest security patches and avoid using public Wi-Fi for banking or financial transactions. Consider a Virtual Private Network (VPN) for additional security when using shared networks.

Be cautious of phishing attempts: Your bank will never ask for your PIN or password via email, SMS or phone call. Delete suspicious messages and never click on unverified links or attachments. A common way to elicit information is to use fear and urgency, for example pretending that fraud is happening on your account and that urgent action is required to stop losses. End the interaction and immediately contact your bank on a trusted number. Be aware that a lot of your information is already available online and fraudsters might only need one final bit of information to commit fraud. If you think you are dealing with someone who knows your details you are more likely to divulge more.

Monitor your finances closely: Set up transaction alerts from your bank to receive instant notifications of any activity. Review your bank and credit card statements regularly to catch unauthorised charges early. South Africans are entitled to one free credit report per year from each credit bureau under the National Credit Act – take advantage of this to spot unfamiliar accounts or credit applications. If your identity documents have been lost or stolen, register with the Southern African Fraud Prevention Service (SAFPS) for free protective registration. This places a fraud alert on your name, warning credit providers to take extra precautions before approving new applications. You will however need to provide additional documentation if you want to open future accounts or apply for loans to prove you are not a fraudster trying to transact.

Protect your physical information: Store important documents such as your ID, passport and bank statements securely and shred any paperwork containing personal details before discarding it. Shield your PIN when using ATMs or card machines and never accept assistance from strangers. Be vigilant to avoid distractions whenever your personal information can be accessed and this includes where you keep your phone or wallet. A credit card can be cloned within seconds using a ‘skimmer’ or NFC (near-field communication) while it is in your pocket.

Take the delivery labels off online purchase packaging before recycling. If you use the tap and pay facility on your card, enable a PIN and check the payment limits set on the banking app so that your losses are limited. When making payments to new accounts make sure that the banking information is correct even if you think it is from a trusted source as emails can be intercepted. Phone or make contact via another channel that you know is reliable before following a payment instruction blindly.

What to do if you’re a victim
If you suspect fraud or identity theft, act immediately. Contact your bank and financial institutions to report the suspicious activity and block any affected accounts. File a report with the South African Police Service (SAPS) and obtain a case number, which you’ll need when dealing with banks and credit providers. Notify credit bureaus about the fraudulent activity and request that they flag your profile. Contact SAFPS to assist in listing the incident and preventing further misuse of your identity. Acting quickly can significantly reduce damage.

Stay vigilant, stay protected
Fraud and identity theft are not just financial issues – they can also take a major emotional toll. Falling victim to a scam can lead to stress, anxiety, a sense of violation and failure. Although some of these crimes are preventable it is sometimes so sophisticated that even people who are aware of potential scams can be compromised. The key is awareness, caution and regular monitoring of your personal and financial information. Take time each month to review your accounts and credit report, use strong passwords, and keep your devices and apps up to date. Be skeptical of unsolicited messages or calls requesting personal information.

Protecting what you’ve earned
In the digital age, financial wellness isn’t only about saving or investing wisely; it’s also about protecting what you’ve earned. Cybersecurity and identity protection should form part of your broader financial plan, alongside budgeting, insurance and retirement savings. By adopting a few simple habits and staying alert, you can protect your money, your credit and your peace of mind.