Business fraud misrepresentation in Africa
When doing business in Africa, it is best advised to check the business partners you are embarking on business ventures with. Here is an article about some telemarketing companies in South Africa that were found guilty on dealing in business fraud misrepresentation in Africa.
Telemarketing, the process of selling or promoting your business or product via a telephone call that is often accompanied by a standard sales script. This process is practised all across the world and particularly in South Africa. In a nation full of ambitious aspiring business entrepreneurs, South Africa is plagued by hundreds of telemarketing companies that offer a wide range of different services. The most common product sold by telemarketers across South Africa is insurance plans.
In May 2014 an article came out in The Debt Issue and several news blogs outlining the blacklisted telemarketing companies in South Africa. The article stated that more than 100 telemarketing companies in South Africa were reportedly blacklisted for debiting consumers for services that they did not provide. These findings were provided by the Payments Association of South Africa (Pasa). The CEO of Pasa reported that “some of these companies were guilty of fraudulent transactions where banking details of individuals were obtained illegally”.
It is reported that “more than 120 000 of the 31 million payment orders processed monthly had been disputed by consumers”. Most telemarketing companies usually claim to be associated or run under well-known companies therefore they lure consumers into providing their banking details. However, Pasa has reported that most of these companies obtained banking details of consumers illegally without permission.
The CEO of Pasa Walter Volker said that “by keeping track of address details as well as ID numbers, it makes it easier to spot when they reappear under a different guise”. Banks are also advised to teach their clients how to identify and recognize any fraudulent debtors and deductions that are made to their accounts without their consent.
Although the consumers are of primary concern, it is also important to consider the businesses that could have possibly invested money and efforts in some of these bogus telemarketing companies.
How do you ensure that a company that you are planning on doing business with in South Africa is bona fide? At Zero Foundation we offer actionable and timely intelligence about any company in South Africa and we will give you precise and factual information that you require to make an informed decision about venturing into business with companies in Africa.
Contact us today to find out how you can find intelligence on potential business partners.