A group of bogus insurance reps have been randomly approaching people in Grahamstown’s CBD and asking them for their banking details. The fraudsters, who are mainly in their 20s claim they are sales representatives for a medical aid company based in Durban called Medcover. However, an internet search shows no results or background information on this company.
A group of bogus insurance reps have been randomly approaching people in Grahamstown’s CBD and asking them for their banking details. The fraudsters, who are mainly in their 20s claim they are sales representatives for a medical aid company based in Durban called Medcover. However, an internet search shows no results or background information on this company.
Vukani based taxi driver, Vuyo Qengqwa fell for the scam. He said "I trusted these people and provided them with my banking details because I felt that I needed a medical aid in case I get involved in a car accident since I drive a taxi."
He added, "They told me that they were going to deduct only R64 monthly on my bank account and were going to pay out R60 000 if I were to be admitted at a hospital, but they deducted R250." He is not sure how to rectify the situation.
Locals lose out
Nontobeko Mlimi, a domestic worker who lives in Extension 6 is also at her wit’s end.
"When they took my bank account number they told me that they were going to deduct R50 a month and that will be only if I personally approve the transaction with my bank. They deducted R180 without my approval, they played me for a fool," she said.
According to other people who were also approached, the Medcover people insisted that they present the backs of their bank cards to them, exposing the signature and the account number.
One bank manager said that he does not think that it is a good idea for anyone to be handing out their banking information to strangers, especially on the streets.
Another bank manager said, "Customers suffer huge financial losses due to these bogus companies, they should not divulge any personal information because this could cause havoc. The best way to be on the safe side is to make sure that a company is legitimate by visiting a prominent bank and find out about the company."
Because South African banks’ centralise their communication at national head offices, employees of Grahamstown’s local banks commented on condition of anonymity.
