FAKE PAYMENT SCAMS ON THE RISE

Wed 23 July 2025:

Durban seafood business loses thousands in a sophisticated fake payment scam, highlighting a growing trend targeting online sellers.

A Durban seafood business has been swindled out of R6 492 in a cautionary tale for all online vendors, falling victim to a sophisticated fake payment scam. The incident saw a fraudster use falsified proof-of-payment notifications to deceive the business into releasing goods before any money had cleared, leaving the owner out of pocket.

The scam began on a Friday when an individual placed a substantial order for a seafood boil, prawn platters, and frozen items via WhatsApp. According to Reaction Unit South Africa (Rusa) spokesperson Prem Balram, quoted by The Witness, the suspect sent what appeared to be a legitimate proof of payment from First National Bank.

“The order was prepared and collected by an e-hailing driver,” Balram stated. The goods were dispatched, but the funds never appeared in the business’s account.

Emboldened by this success, the same scammer placed a second order worth R4 300 the following day. This time, however, the business owner’s suspicions were raised. She requested an instant payment and, despite receiving another fraudulent proof-of-payment slip, she wisely refused to release the seafood until her bank could confirm the transaction.

On Monday morning, the bank confirmed her fears: no payments had been received. The fraudster reportedly made several calls, insisting the payment had gone through.

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https://whatsapp.com/channel/0029VaAtNxX8fewmiFmN7N22

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A growing threat to small businesses

This incident is not isolated but is part of a rising tide of deposit and refund scams targeting businesses, particularly small enterprises that rely on platforms like WhatsApp and Facebook Marketplace. Financial institutions like Nedbank and FNB have issued warnings about these schemes.

A fake payment scam, as defined by Nedbank, involves tricking a seller with altered or fraudulent teller receipts, deposit slips, or internet payment confirmations. The goal is to convince the seller that a payment has been made and cleared, prompting them to hand over goods or provide services prematurely. FNB’s security centre warns that fraudsters often create a sense of urgency or legitimacy to rush the transaction.

The methods are becoming increasingly elaborate. Balram noted that scammers often use unsuspecting e-hailing drivers to create distance and anonymity. “The drivers are directed to drop the items at designated addresses or even leave them on the roadside,” he explained. In some cases, a second e-hailing service is then used to move the stolen goods to a final, untraceable location. This tactic makes it nearly impossible for investigators to track the perpetrator, as the driver often has no knowledge of the crime.

Banks caution that a proof-of-payment notification — whether an SMS, email, or screenshot — is not proof of cleared funds. Scammers often exploit the delay in inter-bank transfers or use fraudulent cheques that will later be reversed. By the time the victim realises the deception, the goods and the criminal are long gone. This is why vigilance against any fake payment is crucial for business survival.

To avoid becoming a victim:

Always verify funds directly with your bank. Do not release goods or services until the money is reflected as cleared in your account.
Never rely solely on proof-of-payment notifications. These can be easily forged. Look for small errors, misalignments, or spelling mistakes that can indicate fraud.
Be extra cautious after business hours or on weekends, as it is more difficult to get immediate confirmation from your bank.
Use bank-verification tools where available. FNB, for instance, offers a “verify payments” facility to confirm the legitimacy of a payment notification.