Signing Up For Financial Services Online? Tips To Avoid Costly Scams 

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Johannesburg – As more people turn to digital channels to access financial services, the risk of falling victim to online fraud is rising just as fast, warns Edwards Wallace, Head of FinTech and Digital at Financial Services Provider, The Unlimited.

South Africans are increasingly turning to digital platforms to compare, buy, and manage financial products, while scammers are getting better at mimicking the real thing.

“What once looked suspicious is now often well-designed, well-worded, and increasingly difficult to distinguish from legitimate providers,” notes Wallace.

The Financial Sector Conduct Authority (FSCA) continues to warn consumers about impersonation scams, fake investment schemes, and unregistered financial services providers.

The FSCA repeatedly warns the public about the surge in sophisticated scams, particularly those exploiting social media, messaging apps, and digital banking platforms.

In many cases, victims only realise something is wrong after money has been paid or personal information has already been shared.

The Head of FinTech and Digital at Financial Services Provider, The Unlimited, says the rise in digital access has created a double-edged sword for consumers.

“Online access has made financial services more convenient than ever, but it has also made it easier for bad actors to operate,” Wallace says.

“Scammers rely on urgency and confusion.

“They want people to act before they’ve had time to stop, ask questions and verify what they’re seeing.”

Wallace adds that even legitimate providers are sometimes questioned, which makes it all the more important for consumers to know what to look for.

Wallace encourages consumers to use the following checks before engaging with any financial services provider online:

1. Check that the company is registered

One of the most important checks you can make is whether the provider is properly licensed. In South Africa, any business offering financial services must be registered with the relevant regulator. The Unlimited, for example, is an authorised Financial Services Provider with the FSCA under FSP No. 21473. If a company cannot provide a valid registration number, that is a clear red flag.

2. Check who the underwriter is

A legitimate financial product should clearly state who the underwriter or insurer is. This matters because the underwriter is the licensed entity carrying the insurance risk and backing the policy. If that information is vague, missing or difficult to find, proceed with caution. The Unlimited’s products clearly identify the underwriter in the policy wording, with relevant underwriter details visible on its platforms.

3. Verify the official website and contact details

Fraudsters often pose as trusted brands or build fake businesses that look convincing online. Check web addresses, spelling, contact details and email domains carefully, and make sure they align with the company’s official channels. If anything feels inconsistent or difficult to verify, do not continue or share personal information.

4. Check what you are being asked to approve or pay

Take your time when accepting payment requests, debit order approvals or DebiCheck prompts. Before accepting anything, make sure the company name, amount and payment terms match exactly what you agreed to. If anything looks unfamiliar or unclear, stop and verify it directly with the provider through its official channels.

5. Look for consistency beyond the first impression

A legitimate provider should be easy to trace across multiple platforms. Look for consistent contact details, credible media coverage, regulator listings and a visible business presence beyond a single website or profile. Scam operations often look convincing at first glance, but do not hold up when you dig deeper.

“Scam operations are designed to look real on the surface, but they rarely stand up to basic checks,” Wallace says.

“A legitimate provider should be easy to verify and easy to contact.

“Taking a few extra minutes up front can prevent significant financial loss.”

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