By: Ann Cloete from Aon South Africa

In the digital age, online transactions have become integral to everyday life. E-commerce has transformed the way we shop, pay bills and manage finances. “However, this convenience comes with significant risks,” says Ann Cloete from Aon South Africa, an insurance brokerage and risk advisor. “Cybercriminals constantly develop new ways to exploit online banking users and fraudulent funds transfer activities are on the rise, making it crucial for individuals to safeguard their personal bank accounts from potential threats.”

Understanding the Risks

Cybercrime takes many forms, from sophisticated scams that deceive individuals into transferring money into fraudulent accounts through to identity theft and online fraud. Some common scams include:

• Phishing scams – Fraudsters send emails that appear to be from legitimate sources, tricking users into revealing sensitive banking details.
• Identity theft – Criminals steal personal information to gain unauthorised access to bank accounts.
• Online purchase fraud – Scammers create fake e-commerce websites to lure customers into making payments for non-existent products or services.
• Holiday scams – Fraudulent travel deals and rental listings mislead consumers into paying for accommodations that do not exist.
• Social engineering attacks – Cybercriminals manipulate individuals into divulging confidential information through phone calls or messages.

The Role of Funds Protect Insurance

“Funds Protect is an insurance solution specifically designed to cover a loss of funds from an account in your name, as a result of funds transfer due to fraudulent conduct of a third party, which is irrecoverable from your bank or a third party,” explains Ann.

What Funds Protect Covers

A personal Funds Protect policy provides coverage in the event of:

• Identity theft and fraudulent transactions
• EFT/deposit scams
• Hacking, phishing and vishing attacks
• Ransomware attacks
• SIM swap fraud
• Online banking and shopping fraud
• Fake classified adverts
• Bogus property rentals/accommodation booking scams.

Steps to Take If You Fall Victim to Fraud

“If you suspect fraudulent activity on your online banking profile, contact your bank immediately. Acting swiftly can increase the chances of recovering your funds. However, in cases where recovery is not possible, Funds Protect serves as a financial safety net,” says Ann.

Ensuring Adequate Coverage

“When purchasing Funds Protect insurance, it is essential to select an appropriate coverage amount and discuss specific terms, conditions, limits and exclusions. For instance, if you opt for R25,000 coverage but cybercriminals access multiple accounts, your actual financial losses could far exceed the insured amount. Inadequate coverage could leave you vulnerable to severe financial consequences,” says Ann.

Funds Protect cover is a cost-effective solution that provides peace of mind in an increasingly digital world, safeguarding your finances and mitigating the risks associated with online banking fraud.

“In a time where cyber threats are evolving rapidly, taking better decisions to protect your personal bank account better is not just advisable—it is essential,” Ann concludes.