Stokvel members are urged to be vigilant when making withdrawals this festive season.
Cebile Magongo, Strategic Business Manager, FNB Cash Investments said that since October 2023, they have observed 35% year-on-year growth in the number of stokvels opened to date which is reflective of how customers are embracing the power of collective savings.
“Savings from stokvels are used for a variety of reasons. These funds are used for groceries, school fees, stationery, to help family and friends, and they are also used for holidays," Magongo said.
"Whilst saving in a stokvel is beneficial and offers numerous financial and social benefits, it also poses risks as group members can become key targets for criminals. This is more prevalent with those individuals who are receiving their contributions at this time of the year."
Stokvel groups and members should be vigilant against fraudsters and criminals who are waiting to scam and rob them of their stokvel contributions. They should also be aware of how advanced criminals have become on how they target stokvels and their members.
Here are a few safety tips for stokvel groups this festive season:
- Avoid cash withdrawals and make sure that all payments are processed through safe digital channels. This will not only safeguard their money but will also allow stokvels to save on cash handling fees as digital payments are free.
- Consider doing all digital payments at the last stokvel meeting, ensuring that when members leave the meeting, their funds have been transferred into their personal bank accounts.
- Avoid announcing stokvel meetings or stokvel money withdrawal dates on social media. The information about stokvel meetings or stokvel money withdrawal date should only shared with members of the stokvel group.
- Don't carry or travel with large sums of money during this peak season, if you have to travel then consider doing so in a big group.
- Instead of withdrawing all of your the funds at the same time, consider staggering the withdrawals on different days to ensure that your contributions are safe.
- Consider making cash withdrawals during business hours when it’s safer with security guards present.
- Avoid making cash withdrawals of club members’ contributions on high-risk days like the end of the month, or the day before the big holidays.
IOL Business