The Dangers of e-Wallet and other Instant Money Payments

e-Wallet or an Instant money payment, is a method of sending money to a person without using a traditional bank account. In many cases it comprises of a PIN or secret wallet number that can be sent to someones mobile phone or e-mail. It is usually a cardless transaction and has no bank account connected to it. Once the recipient has the PIN it allows them to withdraw the value of funds you made available for that specific transaction from an ATM. It is as good as giving someone cash.

Usually this method of sending funds is limited to a low value of around R2500 or below.

There are criminals who frequent a number of recreational forums classified sections and ripping community members off by using this method of payment. As it is regarded as cash, there will be very little, if any, co-operation from the bank in any fraud investigation.

The modus operandi is almost the same each time, where the criminal makes contact via Whatsapp or any form of instant messaging and encourages the trade to be done via an e-wallet. In many cases, it is in response to a Wanted advert where the poster has included their contact number in the advert, meaning the criminal does not require to be registered on the community platform.

For now, we would strongly discourage any person from using an e-Wallet unless you are 100% certain about the person you are transacting with. Any suggestion to using an e-Wallet in a trade should be met with extreme caution.