November 29 is the date when Black Friday offers will be available, marking the beginning of the Christmas shopping season for many consumers. There is a lot of speculation that scammers will increase their game in the coming days, which gives it even more reason to be aware of the signs of threatening phoney texts.
As the critical Black Friday and festive season periods approach, the retail industry in South Africa is showing signs of resilience, according to the latest State of the Retail Nation report produced by NIQ South Africa.
The report examines the industry's expectations over the upcoming period.
A recent warning from Standard Bank alerted South Africans to the fact that scams are on the rise as Black Friday approaches, with criminals increasingly using persuasive tactics to attract people's attention.
Even though there have been no studies on how Black Friday will affect the local economy, it appears to have the potential to generate R88 billion of economic activity in South Africa in 2024.
Based on Capital Connect's findings, South Africa's wholesale, retail, and fuel sectors will contribute a total of R88 billion in additional economic value to the economy in November 2024.
The Bureau of Market Research has conducted a study that shows that the Black Friday sales in South Africa will spur R22 billion in increased direct sales this year, with a further R28 billion in indirect economic impact on the country.
There is expected to be an additional economic value of over R88 billion for the South African economy due to the growing interest of customers in Black Friday sales taking place in November 2024 in this country's wholesale, retail, and fuel sectors.
Based on the results of a research report published by the Bureau of Market Research on behalf of fintech Capital Connect.
During the holiday shopping season this year, retailers in South Africa will likely produce R22 billion in additional direct revenue as a result of Black Friday, and R28 billion in indirect economic impacts as a result of it.
Further, the wholesale industry is expected to gain additional sales of R32.1 billion, while fuel sales are expected to increase by R6.2 billion as well.
As a result of the study, consumers seem to be more interested in Black Friday in 2024 than in the previous three years (2021-2023).
The result of this is expected to push retail sales in November 2024 to a value of approximately R136 billion, up 17.3% when calculated in nominal terms from the R116.1 billion of retail sales recorded in November 2023.
After a long period of economic stagnation and retail stagnation, the positive outlook for Black Friday 2024 suggests that the tide is turning for South African retailers after a long period of economic stagnation and retail stagnation," said Steven Heilbron, CEO of Capital Connect, which is part of Lesaka Technologies, a Nasdaq- and JSE-listed company. Several factors have contributed to a better economic outlook, including a marked reduction in load-shedding, the introduction of the Two-Pot Retirement System, a reduction in interest rates, and a decrease in inflation.
There is a rising trend in consumer confidence that will give an advantage to innovative retailers with the right product mix and promotions."
In this year's challenging retail climate, Black Friday sales will provide a welcome boost to retailers who have struggled to operate. The formal retail sector, on the other hand, is predicted to show real growth of only 1.4% in 2024 with an increase of just 0.6%.
In a study conducted by Standard Bank, it was revealed that scams are widespread in Gauteng, where 38% of cases were reported. KwaZulu-Natal had 18%, while the Western Cape had 15%.
In his statement, Rathogwa noted that the bank has begun noticing some concerning trends around Black Friday, including an increase in the amount of social media fraud, which has been particularly persuasive.
It is still a significant threat that deceptive emails are sent by fraudsters purporting to be emails from legitimate companies, such as retailers, streaming services, and banks, to mislead users.
Several emails contain links to fake websites that are designed to collect sensitive information, such as login details and passwords.
The scammers also make use of luring strategies to entice the recipient into clicking on links that they believe are malicious, as well as offering rewards to the first few buyers.
As well as this particular tactic, more and more fraudsters are also using social media accounts to promote offers that are heavily discounted, and sometimes even free. This type of scam is increasingly common.
A scam artist creates a page on Facebook, builds a fan base, and posts false reviews trying to entice the public to buy.
Upon engaging an interested buyer, the conversation switches to WhatsApp to discuss details about the buyer's bank account, courier service, and so on.
Upon making the payment and providing proof to the police, the victim's social media pages and phone numbers will have disappeared from the Internet.
Whenever a deal seems too good to be true, it most likely is. Be careful if someone puts a lot of pressure on users to make a quick payment to secure a deal. Rathogwa also warned customers to watch out for fake websites that often look exactly like legitimate retailers" he added.
To protect against Black Friday scams, experts advise consumers to take several precautions while shopping online or in-store. Shoppers should confirm the authenticity of a purchase before proceeding by buying only from trusted and verified sources. Carefully reviewing transaction details and ensuring that any One-Time Pin (OTP) generated corresponds to the specific transaction is critical. Verifying beneficiary account details before making electronic transfers is also recommended, with tools such as Standard Bank’s Account Verification Service offering an added layer of security.
It is equally important for individuals to manage the security of their devices. Any unused, sold, lost, or stolen devices should be delinked from online banking profiles immediately, and banks should be notified without delay if a device is misplaced. Furthermore, shoppers are encouraged to report any suspicious activity to their financial institutions.
Rathogwa emphasizes the importance of scrutinizing web addresses for typos or subtle alterations, as scammers frequently create fraudulent websites that mimic legitimate retailers. Such vigilance can help safeguard personal and financial information during the shopping season.
