Cash-strapped consumers under fraudulent fire – scammers on the rise
(03 June 2025, Johannesburg) People are more connected today than ever, primarily due to the expansive adoption of new technologies, the internet, an increased reliance on social media, and powerful mobile devices. Whilst this has led to greater opportunities for interaction, there are downsides of digital connection.
“Increased reliance by consumers and businesses on online platforms have led to a significant rise in scams and fraudulent activity,” says Leonie van Pletzen, CEO of MicroFinance South Africa (MFSA). “Through leveraging different digital channels, including phishing, smishing, and social media scams, victims are tricked into sharing personal information, passwords, downloading malicious software, or making fraudulent transactions.”
According to Roy Retief, Head of Operations at the South African Fraud Prevention Service, the country is experiencing similar trends in financial fraud to those in other countries. He also advised that scammers are continually evolving their methods, using convincing tactics to gain access to personal and financial information.
“Scammers are taking advantage of the increasingly desperate need for consumers to access cash, and are very active when it comes to lending scams,” warns van Pletzen. “Posing as a registered of credit provider, they will offer large amounts of money regardless of your credit worthiness or existing debt.”
Cash-strapped consumers and those who are ‘credit invisible’ are easy targets for these criminals to lure into providing their personal details. Many South Africans are unable to access financial products, especially credit, and the offer of a large loan is attractive to them.
“Scammers are increasingly targeting vulnerable consumers with little or no financial literacy, as they are easier to convince due to their lack of understanding of financial concepts,” she says.
She lists some of the warning signs to look out for when considering taking out a loan:
1. Instantaneous and guaranteed loan approval with no credit checks
2. Lending offers of large sums of money
3. Upfront payment of pre-administration fees
4. Time constraint or expressed urgency to accept the offer before expiry
5. Offering of an exclusive deal or special offer
6. An unmatched email address to the originator who represents a reputable credit provider
“Protecting and educating users of financial services are two of the most important elements of financial inclusion, and it is critical that all South Africans are aware of the prevalence of scams, and how to avoid them.”
As the country enters Winter – a normally tough time for consumers and those struggling financially – the need to safeguard against fraudsters including upskilling on the latest in hoax communications and vishing, phishing, and identity scams is a must.
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About MFSA
MicroFinance South Africa (MFSA) represents South Africa’s registered microfinance institutions, advocating for ethical lending, consumer protection, and financial inclusion. Through industry leadership, MFSA promotes responsible credit practices that empower individuals, support small businesses, and drive economic growth.
About Leonie van Pletzen
Leonie van Pletzen is the Chief Executive Officer of MicroFinance South Africa (MFSA), a leading voice for the microfinance sector in South Africa. With nearly 15 years of experience in the industry, Leonie is recognised as a passionate advocate for ethical lending, financial inclusion, and regulatory reform. Having risen through the ranks at MFSA since 2010, she brings a wealth of expertise in industry advocacy, corporate governance, stakeholder engagement, and sustainable development.
Leonie has played a key role in shaping policy dialogue between government, regulators, and the private sector, and is an active contributor on various national committees, including the National Credit Regulator’s Credit Industry Forum and the Banking Sector Education and Training Authority. Her leadership is defined by a commitment to protecting vulnerable consumers while ensuring the long-term sustainability of responsible credit provision in South Africa.
For further information contact:
Claire Watt | Ntokozo Kalako
The Friday Street Club
Tel: 082 490 3796 | 067 610 6879
Email: claire@thefridaystreetclub.co.za | ntokozo@thefridaystreetclub.co.za