Don’t be a victim of investment fraud - be vigilant all the time

How to stay safe

Hackers very often rely on the human failure point because it's the easiest point to compromise – easier than infiltrating sophisticated databases, firewalls and cyber security controls at financial institutions, Jean van Niekerk says.

So the best way to stay safe, is to guard your information carefully.

• Use a secure email and strong passwords: Too many South Africans are using Gmail, Hotmail or other public domain email addresses without using strong passwords, Van Niekerk says. Many people use the same password – or slight variations of it - across social media and investment and banking platforms. If one of these platforms is hacked, all the passwords are compromised, Van Niekerk says. Rather use a credible password manager, he says.
  
  Never allow your browser to save your password, Werner Lunow, IT Manager at Allan Gray, says rather write your password down or store it in a password vault and keep your device secure with a pin or password.
  
  
• Be careful what links you click on: Be very careful of links and accidentally divulging your details or installing malware or viruses onto your device, Van Niekerk says.

Hover over any link to check the true destination and don’t click if you have any doubts.

Do not use the same devices as your young children use to do your investing and banking. Children may not understand that they are on an unsafe site or downloading malicious files, Van Niekerk says.

• Use two-factor authentication: Two-factor authentication – when you have to use a code sent to your email or cell phone to verify it is you logging in - adds another layer of protection. It is astonishing how many people are happy to keep a lot of personal information behind just a login and password, Van Niekerk says.
  
  
• Don’t use paper forms: If your investment provider offers a secure online account use it to transact rather than submitting scans of paper forms that can be manipulated, Lunow says. Check the validity of your online account by clicking the padlock icon next to the website address and log out when you are finished transacting, he says.

Keep an eye on your credit report: Check your credit report regularly or pay for a service that alerts you to changes in your credit profile, Van Niekerk suggests. Read more: What is my credit report?

If you are a victim of identity theft, report this to the South African Fraud Prevention Services (SAFPS).

This not-for-profit organisation maintains a database of those whose identity has been compromised and financial institutions check it.

The SAFPS launched a Secure Citizen app earlier this year where you can register for a unique identifier to be used when you apply for credit and ensure financial institutions can confirm your identity prior to completing any application, such as that for credit.

• Keep your email clean: Delete emails with copies of sensitive documents such as your payslip or bank statement that you may have sent to open an account or apply for credit, Van Niekerk says.
  
  
• Check your investment statements: Check your statements – even those tied up for fixed terms – often, Van Niekerk suggests.
  
  
• Let contributions be collected: If your investment provider can collect money from your bank account for investments use this service to avoid paying into the wrong account, Lunow says.
  
  
• Don’t use public Wi-Fi services or charging stations: Public Wi-Fi services can be hacked and when you use your cable in a public charging station you may allow data to be transferred from your device, Van Niekerk says.
  
  
• Dispose of electronic devices safely: Dispose of old devices, hard drives, USB drives, memory cards, etc through reputable electronic waste disposal companies.
  
  
• Be sure those you engage with are legitimate: If anyone contacts you by phone, email or WhatsApp and it’s not related to something you initiated, do not engage.
  
  Drop the conversation and contact the institution directly yourself using the numbers you know are legitimate. Financial institutions will only call you from their published number not from a cell phone number or via social media, Van Niekerk says.
  
  Always check the email address matches the investment house’s email domain, for example, @allangray.co.za for Allan Gray, Lunow says. Check the address has not been spoofed by hovering over any email address. 
  
  
• Anti-virus software: Use a reputable antivirus software and anti-spyware and keep it up-to-date, Lunow says. Install the latest security upgrades to your device’s operating system, applications and browser. Install a personal firewall that restricts external devices from accessing your device, he says.