The start of the year is a time for fresh beginnings, but it’s also a prime period for fraudsters to target unsuspecting individuals. Common January scams can take many forms, from fake job offers to phishing emails. Scammers exploit people’s post-holiday financial pressures and New Year resolutions, making January a high-risk month for fraud.
In this guide, we’ll explore some of the most common January scams and provide tips to help you avoid them. By staying informed and vigilant, you can protect yourself and your finances.
1. The “New Year Loan” Scam
Among the most common January scams, the fake loan offer tops the list. Many people feel financially stretched after the festive season, making them easy prey for scammers promising quick and hassle-free loans. These scams often involve upfront fees disguised as “processing charges.”
How It Works
Victims are lured in by advertisements offering loans with “no credit checks” or “guaranteed approval.” After paying the requested fee, the loan never materializes, leaving the victim out of pocket.
How to Avoid It
- Work only with licensed financial institutions.
- Verify the lender’s credentials with the National Credit Regulator (NCR).
- Remember, no legitimate lender will require payment before granting a loan.
2. Online Shopping Scams
Online shopping fraud is another common January scam, especially during post-holiday sales. Fraudsters set up fake websites that mimic legitimate online stores, offering discounts that seem too good to be true.
How It Works
Shoppers are enticed by social media ads or fake websites advertising significant discounts. Payments are taken, but the items are never delivered.
How to Avoid It
- Purchase from trusted and well-known online retailers.
- Look for secure payment options and customer reviews before buying.
- Avoid deals that feel overly urgent or suspicious.
Related: Buy Electricity Only from Eskom-Approved Vendors: Protect Yourself from Scams
3. Employment Scams
As job seekers flood the market in January, employment scams become one of the most common January scams. Fraudsters exploit the job hunt by posting fake job listings and asking for fees to process applications or training.
How It Works
Victims are promised high-paying jobs but are asked to pay for things like background checks or training materials upfront. After making the payment, they realize the job doesn’t exist.
How to Avoid It
- Never pay for job applications, interviews, or training.
- Research the company thoroughly.
- Report suspicious job offers to job boards or social media platforms.
4. Phishing Scams
Phishing attempts spike in January as people check their bank statements and plan budgets. These scams, a consistent feature of the common January scams list, involve fraudsters posing as banks or service providers to steal sensitive information.
How It Works
You might receive an email or SMS claiming to be from your bank, urging you to verify account details or reset your password through a link. The link leads to a fake website designed to steal your information.
How to Avoid It
- Avoid clicking on suspicious links in emails or SMS messages.
- Contact your bank directly using official channels to confirm requests.
- Use two-factor authentication for added security.
5. Fake Investment Opportunities
The desire to save and grow money in the New Year often leads people to fall victim to investment fraud. Fake investment schemes are a recurring theme in common January scams.
How It Works
These scams typically promise exceptionally high returns in a short period. Victims are pressured to invest immediately to avoid “missing out” on the opportunity.
How to Avoid It
- Always consult a financial advisor before investing.
- Verify the company’s legitimacy with the Financial Sector Conduct Authority (FSCA).
- Avoid schemes that are vague or overly complicated.
6. Charity Scams
January inspires acts of generosity, making fake charities one of the common January scams. Fraudsters create emotional appeals to solicit donations for non-existent causes.
How It Works
Scammers ask for donations via phone, email, or social media, claiming to represent a charity. The donations go directly to their pockets, and the cause they claimed to support doesn’t exist.
How to Avoid It
- Donate only to registered charities you’ve researched.
- Ask for official registration documents before contributing.
- Use secure payment methods when making donations.
7. Subscription Renewal Scams
Another one of the common January scams involves fake notifications about subscription renewals for services like streaming platforms or antivirus software.
How It Works
You may receive an email or SMS claiming your subscription is about to expire, urging you to click a link to renew it. This link often leads to a site designed to steal your payment information.
How to Avoid It
- Verify subscription renewal requests directly with the service provider.
- Avoid clicking on links in unsolicited emails or SMS messages.
- Keep track of your subscriptions to avoid confusion.
General Tips to Protect Yourself
- Stay Alert: Be cautious of offers or requests that seem urgent or too good to be true.
- Educate Yourself: Learn about common January scams to identify them quickly.
- Secure Your Information: Avoid sharing personal or financial details with unverified individuals or organizations.
- Report Fraud: If you fall victim to a scam, report it immediately to your bank, SAPS, or the Fraud Prevention Service (FPS).
Related: How to Avoid Scams When Collecting Your SASSA Grant at Retailers
The New Year brings hope and excitement, but it’s essential to stay vigilant against fraudsters. By understanding and avoiding common January scams, you can protect yourself and your money. Share this information with your friends and family to spread awareness and keep everyone safe.