Scamming….If in doubt “Opt Out”

We are victims being preyed upon by criminals who want our money. They are creating ways and means to get information about us to enable them to access our bank accounts and credit cards.
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Scamming is rife and becoming more and more sophisticated as the various security measures are improved to avoid them.

In most scams there is a hook. Something that will get your attention and lure you into responding:

Updating information on you banking details
You’ve won money in a lotto
You’ve inherited from a distant relative
You are owed money from SARS

The vital information that the scam aims to get from you:

Banking details
Financial information
Passords
CSV number at the back of your credit card
Cell phone number

With this information the game is on to access your money quickly before you realise it.

Banks and financial institutions spend a lot of time and money tackling the problem. It is a moving problem as criminals learn to navigate through security systems as they are upgraded.

We need to be much more aware and diligent in the cyber world, recognising that scamming exists.

What can we do?

It stands to reason that we should never part with the information above. We should cross check with the institution if we suspect we are being scammed. Phoning the security/fraud line before responding is that extra step which will avert being scammed.

Link your banking transactions to your cellphone. Every time a transaction is made against your credit card you get a message on your phone which you can take action on.

Some other ideas…

Blank out your CSV number on the back of your credit card and memorise it. This number is used for online purchases and is often obtained by criminals at the ‘point of sale’ credit card machines.

Be suspicious of any email with urgent requests for personal financial information

Avoid filling out forms in email messages that ask for personal financial information

Look more closely at the Logo and design of the letter or website. Often there are grammatical errors which are not consistent with professional companies.

There is a lot more that can be done on our part. Be aware that the criminal is on the prowl.

If in doubt opt out…..

You pay to invest….

Fees as a percentage of returns become more noticeable the lower the returns

Expressed as a reduction on yield. Which means that if you earn 10% and you total costs are 2,5% you actually earn 7,5%.
This is the actual return which compounds over the duration of your investment.

There are generally three components of costs.
Breakdown:
Administrator – 0,5%
Financial advisor – 0,5%
Fund manager – 1,5% plus
VAT – 14%

You can save on advisor fees by going direct

Downside
Choosing the wrong investments can cost your more than the fees that you save

or
on fund manager fees by buying the index/average through an exchange traded fund
Downside
Performance will always be average

The impact of fees on future values:

R100 pm over 10 years images
@ 10% = R20 484
@ 9.5% = R19 908 ———— 2,89%
@ 8% = R18 294 ———— 11,97%

R100 pm over 20 years
@ 10% = R75 936
@ 9.5% = R71 192 ———— 6,66%
@ 8% = R58 902 ———— 28,91%

Fees have a greater impact on the value of your investment the longer you are invested.

You need to decide on the value propositions relative to the price you pay.