Businesses lose P7.5m to SA e-commerce fraudsters

PETER MADIYA
Correspondent | Friday April 13, 2012 00:00

The chief of the fraud unit in the policing area, Superintendent Chifana Toitoi, fears that many more businesses across the country could be seriously affected, as the cases were only recorded in his beat.

He revealed that the syndicate's modus operandi is similar in almost all of the cases. After a local company places an order for goods from a South African counterpart, the syndicate sends an 'urgent email message' to the procuring company claiming to be the supplier. In the message the 'supplier' claims to have changed banking details for some unknown reasons and directs the local company to update the details accordingly.

'They normally leave a telephone number in the message for verification of the sudden change of the banking details,' he said. He added that after some time, the real South African based supplier makes enquiries about payment, only for the locals to realise that they have been defrauded.

'Companies should learn to have proper telephone numbers of the South African companies they do business with, and should always reconfirm with them if they receive any messages claiming change of banking details.

Electronically depositing cash after such messages without verification is tantamount to suicide,' he warned. Toitoi advised that a professional company will notify its trading partners of change of banking details through other communication mediums outside the realm of the internet.

He advised companies to always consult properly with other local companies in their line of business before committing to the unknown.