As millions of South Africans prepare for the annual Black Friday shopping bonanza, financial experts are sounding alarm bells about the hidden dangers lurking behind those irresistible discounts.
The National Financial Ombud (NFO) is urging consumers to think twice before swiping their way into what could become a devastating financial hangover, warning that seasonal bargains often come with long-term consequences that can undermine essential financial goals and lead to post-holiday hardship.
The adrenaline rush that leads to financial ruin
“Black Friday is a shopper’s adrenaline rush with jaw-dropping discounts, limited-time offers, and the thrill of snagging the perfect deal,” said Nerosha Maseti, Credit and Banking Division Lead Ombud at the NFO. “But beneath the buzz lies a financial minefield.”
The warning comes as consumer debt levels continue to climb, with many South Africans already struggling to make ends meet. The NFO’s data shows that impulsive credit-fuelled shopping during promotional periods like Black Friday consistently leads to unmanageable debt loads.
“Swipe-happy spending can spiral into credit card chaos, and lurking digital scams are ready to pounce when vigilance slips,” Maseti cautioned. “To truly win the day, smart shoppers arm themselves with a plan, stay sharp online, and keep their budgets on lockdown. After all, the best deal is one that doesn’t cost your peace of mind.”
The debt trap waiting to pounce
Financial experts warn that the risks of credit-fuelled Black Friday spending include:
- High-interest credit card balances that can take months or years to pay off
- Depletion of savings intended for essential goals like home ownership, education, or emergencies
- Post-holiday financial strain when unexpected credit card or loan repayments come due, leaving consumers with limited funds for essential living expenses
The NFO advises consumers to set a realistic spending budget and stick to it religiously, prioritise long-term financial goals over seasonal bargains, and keep credit balances low to maintain financial health.
Fraudsters target Black Friday shoppers
Adding to the financial dangers, the NFO has identified a surge in sophisticated credit card scams specifically targeting Black Friday shoppers. Criminals are zeroing in on users of non-bank and store-branded credit cards, particularly those tied to major retailers.
“These criminals contact cardholders by phone, impersonating representatives from these companies, and deceive unsuspecting consumers into revealing their confidential One-Time Pins (OTPs),” Maseti explained. The result: unauthorized purchases at large merchants, leaving victims responsible for fraudulent charges.
While similar scams have plagued traditional banking for years, their rising prevalence in the non-bank credit card market is causing particular concern among financial regulators.
R120,000 airline ticket scam: A cautionary tale
The scale of digital fraud became starkly apparent in a recent case investigated by the NFO, where a consumer lost R120,000 after responding to what appeared to be a legitimate social media advertisement for discounted airline tickets.
The sophisticated scam began innocuously enough – the victim submitted her phone number and email through what seemed like a secure link. She was then contacted via WhatsApp and instructed to download an app from the Google Play Store to access promotional codes.
What appeared to be a legitimate application was actually embedded with malware. Soon after installation, the consumer’s phone began overheating and behaving erratically. The unexpected activation of the camera’s green light raised immediate red flags.
Within minutes, the victim discovered two unauthorized transactions on her banking app and immediately reported the incident to both her bank and police – all within just 27 minutes of the fraudulent transactions.
Despite her swift action, the bank denied liability, stating that the payments had been authorized through selfie-authentication on her trusted device. The NFO’s investigation revealed that the fraudulent app had enabled remote access and biometric simulation, essentially handing over complete control of the victim’s device to criminals.
“By downloading the fraudulent app, the consumer essentially handed over her phone, including all the information stored on it, to the criminals,” Maseti said. “The NFO accordingly could not conclude that the bank was liable for the consumer’s loss.”
How to protect yourself this Black Friday
The NFO has issued specific guidelines to help consumers navigate Black Friday safely:
Guard Your Personal Information: – Never share your OTP with anyone, regardless of who they claim to be – End suspicious calls immediately and contact your service provider directly using official contact numbers – Be extremely sceptical of social media promotions
Verify Before You Trust: – Check official company websites or verified social media accounts before engaging with any offers – Avoid sharing personal information publicly on social platforms – Think twice before downloading any apps, using only trusted sources with verified developers and strong reviews
Monitor Your Finances Closely: – Check bank transactions daily, especially during high-activity periods – Report any suspicious activity immediately to your bank – File police affidavits when necessary for fraud cases
Where to get help
For consumers already caught in credit disputes or fraud situations, the NFO provides assistance with: – Fraudulent transactions and unauthorized debit orders – Incorrect credit listings
– Reckless lending or contractual disputes
Contact the NFO:
Tel: 0860 800 900
Email: info@nfosa.co.za
The bottom line
As South Africa prepares for another Black Friday shopping frenzy, financial experts stress that the best deal is one that doesn’t compromise your long-term financial security. In an economic climate where every rand counts, the true cost of that “bargain” may be far higher than the price tag suggests.
“Smart shopping means thinking beyond the moment,” Maseti concluded. “Your future financial self will thank you for the restraint you show today.”
