In recent years, banking fraud has become increasingly sophisticated, with pensioners often finding themselves scammed by unscrupulous criminals.
These retirees, who may be less tech-savvy and more trusting, have become prime targets in incidents that can devastate their life savings.
“While pensioners are prime targets of criminals, it’s important to know you can fight back,” said Brian Katjaerua, chief executive of the Bankers Association of Namibia. “In this article, we will unpack the most common fraud schemes and provide tips on how to protect your hard-earned savings. Our goal is to empower our elderly community members with the knowledge and tools they need to safeguard their financial well-being in today’s digital age.”
Phishing
One common tactic used against pensioners is phishing, where fraudsters send deceptive emails or text messages posing as an employee from a legitimate bank or financial institution. These messages often create a false sense of urgency, prompting recipients to click on malicious links or divulge personal information like their PIN (personal identification number).
“Pensioners should be wary of any unexpected written communication from banking employees who ask for personal details or use scare tactics to prompt immediate action such as moving funds to another account for ‘safe keeping’,” explains Katjaerua.
Vishing
Where phishing occurs via text or email, vishing involves voice phishing. Scammers call pensioners, impersonating bank representatives to extract confidential information or coerce them into transferring money. These calls can be particularly convincing, as fraudsters may have obtained some personal information that makes them sound credible.
These scammers are very persuasive and come across in a professional and trusted way. However, they exploit the trust of their victims and use high-pressure tactics to manipulate them into making hasty decisions, ultimately leading to financial loss.
“With phishing and vishing incidents on the rise we have put together some useful tips on how to outwit banking fraudsters,” added Katjaerua.
“Finally,” Katjaerua said, “educate yourself by staying informed about the latest scams and fraud techniques. Speak to your banking consultant about your concerns and read their literature on how to stay safe. Don’t hesitate to ask questions or seek clarification on any banking practices you don’t understand. Remember, knowledge is your best defence against fraud. Stay vigilant, trust your instincts, and if something seems too good to be true or feels suspicious, it probably is.”
Useful tips to outwit fraudsters:
1. Verify the source of the call, email or text. Always double-check the sender’s email address or phone number before responding to any financial-related communication.
2. If you receive a suspicious call, email or text, do not respond. Instead, contact your bank immediately.
3. Be sceptical. Never part with personal or confidential information. Banks will never ask for passwords or PINs over the phone or via email.
4. Never allow yourself to be pressured into making immediate decisions, especially regarding finances.
5. If you bank digitally, keep your security software updated.
6. Use strong passwords. Create complex passwords for each online account and change them frequently.
7. Most banks offer two-factor authentication – make sure you enable this as it adds an extra layer of security to your accounts.