WhatsApp Scams

What is it?

WhatsApp has become a great platform for people to engage with each other. Unfortunately, criminals can also use this tool, so please be cautious when joining a WhatsApp group.  They operate by setting up fake  ‘savings club’ or stokvel, inviting users with small amounts to join the club and to invite as many other people as possible.

Traditionally if you join such a group, it is made up of a group of friends who come together to form an association. They are generally run by someone you know and trust who’ll recommend you as an honest person to the group. They are also governed by formal rules and regulations, hold regular meetings and the pay-out ratio is normally determined upfront.

How can you protect yourself?

Avoid joining savings groups via WhatsApp or other social media especially if you do not know the people who contribute (faceless depositors) or the people who recruit (faceless recruiters) because:

• Recruiters and depositors can delist their cell number easily resulting in you never being able to contact them for contributions again.
• Make sure that the group is legitimate and registered with a known and reputable association, before making any investment or parting with cash.
• If you are unable to verify the savings group, accept that the risk of it being scammed is unacceptably high.