Woolworths fraud warning

The retailer said that criminals are using new tactics to trick people into handing over sensitive information, often by posing as trusted institutions.

“We’re always looking for ways to make your shopping experience safer and more secure. With card and identity fraud on the rise, it’s very easy to be scammed, so we’ve put together some tips to help you protect your account,” Woolworths said in its latest fraud alert.

The company explained that one of the latest scams convinces people to share their personal information online or via SMS.

Criminals often disguise themselves as banks or retailers and contact customers with urgent messages. They then reset login details and persuade victims to disclose their personal data, sometimes even verifying it through One Time Pins (OTPs). 

“If you receive an OTP and haven’t requested one, logged into your banking profile, or done a transaction, do not approve it. If you do so, you’ll give fraudsters access to your login details,” Woolworths said.

Other tactics include phishing, which happens via email, and smishing, which is the SMS version of the same scam. 

Customers are sent fake links that direct them to fraudulent websites where they unknowingly enter personal details.

Scammers sometimes call directly, pretending to be from a bank’s or retailer’s fraud department. 

“They claim they want to remove suspicious transactions and then instruct customers to download remote access software before logging on to online banking.”

“They may even tell customers to ignore calls from their bank. Never download remote access software, give out your PIN, or give anyone access to your desktop, laptop, or phone,” Woolworths said.

The warning from Woolworths comes just after several banks also raised the alarm about the growing fraud crisis. 

A growing threat

According to the South African Banking Risk Information Centre (SABRIC), the threat has escalated dramatically, with syndicates becoming more technologically advanced and harder to detect. 

The organisation’s latest Annual Crime Statistics for 2024 reveal that the industry could be heading into what experts call a “fraud storm” in 2025.

The sharpest surge has been in digital banking crime, which increased by 86% last year. Reported cases rose from 52,000 in 2023 to nearly 98,000 in 2024, while financial losses soared 74% to R1.888 billion. 

Banking apps have become the primary target, accounting for 65% of all cases, with more than R1.2 billion lost through these channels alone. 

Criminals are now using highly advanced techniques such as AI-generated scams, deepfake impersonations, QR code phishing known as “quishing,” SIM swap fraud, and malware disguised as genuine mobile apps.

SABRIC’s data shows that even with stronger banking security systems, human error remained the biggest weakness. 

Social engineering—where criminals manipulate people into revealing information—has become the main tool of fraudsters. 

Victims often face a multi-step attack, where a phishing email is followed by a convincing phone call, known as “vishing,” from someone pretending to be bank staff. This combination makes it more likely that victims will hand over their PINs, OTPs, or login credentials.

Fraud has also spread beyond digital banking into other sectors of credit and finance.

Unsecured credit fraud surged by 57.6%, with over 62,000 fraudulent applications reported, while actual losses more than doubled to R221.7 million. 

At the same time, card fraud has continued to rise despite the shift to digital platforms. Losses from card-related crime increased by 26.2% last year, reaching R1.466 billion. 

The most common form is “card-not-present” fraud, where stolen card details are used for online transactions.

The widespread availability of artificial intelligence has made scams more convincing, while underground “Fraud-as-a-Service” platforms now sell phishing kits, malware, and mule accounts, allowing almost anyone to get involved in criminal activity. 

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/finance/837042/woolworths-fraud-warning/