More than half of South African consumers (56%) say they will not be able to pay at least one of their current bills and loans in the next three months, according to a study by TransUnion in late May and early June.
And with high inflation rates and forecasted continued rate hikes on the horizon, the survey also found that the majority (52%) of households said they would cut back on their discretionary spending.
The consumer credit reporting company has said that this kind of environment leads to despair in people looking to escape their financial predicament.
It said more than half of consumers (53%) are unaware that they are being targeted by fraudulent schemes. Most Gen X were unaware (63%) they were being targeted – much higher than Gen Z (45%).
Cash and gift card scams remained the main fraud scheme (42%), followed by third party scams (29%) and unemployment scams (27%). The quarterly trend of stolen credit cards or fraudulent charges is stable – 11%; dropped one percentage point, TransUnion said.
Most common consumer fraud programs
Personal information is a top consumer priority; 89% of consumers said they were concerned about sharing personal information, according to TransUnion. Consumers did not want their identity stolen (75%); concerned about invasion of privacy (74%); and did not want to receive unsolicited marketing communications (43%).
Sentiment was similar across generations, with baby boomers (81%) most concerned about identity theft, the credit specialist said.
Personal experience with digital fraud attempts in the past three months
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