It is that time of the year when South Africans who save their hard-earned money through stokvels and societies are excited to share the spoils of their year-long savings.

Stokvels are big money and big business, especially at this time of year, and have become soft targets for criminals.

“There are over 11.4 million individual stokvels members, belonging to over 811 000 groups. Collectively, stokvels are reported to constitute a pot valued at R45 billion.” Andile Mazwai, the chief executive of the National Stokvel Association of South Africa (Nasasa), said.

Vanesha Palani, the executive for financial management at Nedbank, has urged members to be on the lookout for criminals looking to a make a quick buck over the festive season.

Palani said cash was not always king.

“If you are a stokvel leader or member, you need to be extra careful with your cash during this period. Make electronic payments. If you are the leader of a stokvel, try to pay out as little money as possible in the form of cash.

“Rather arrange for your members to get their money by direct electronic funds transfer (ETF) into their bank accounts. This minimises the risk of having to withdraw big sums of cash from the bank and transport it to the place where members get paid,“ Palani said.

Many stokvel leaders and members have been robbed of thousands of their hard-earned money because they made cash withdrawals and cash deliveries to their members.

Palani has appealed to members and leaders to also be cautious when withdrawing money.

“Be cautious at ATMs. If you are a stokvel member and you have to withdraw money from an ATM, try to avoid machines located in high-risk areas and don’t do your withdrawals at night. If possible, you should try to withdraw your money from an ATM located in a shopping centre or somewhere where there is security close by,” she said.

“Don’t withdraw all your money at once. If you have to withdraw cash, do it in small amounts over a few days rather than withdrawing it all at once … Also, be mindful of your belongings. Always keep an eye on your valuables and your handbag or backpack if you carry one … (and) never leave them unattended or put them down where it is easy for someone to grab them while you are busy doing something else.”

Palani also advised members to keep their communication about money and payments private and restricted to as few people as possible.

“Nobody needs to know about your stokvel money or what you plan to do with it. Don’t tell people that you are receiving a payment, and don’t broadcast any plans on social media.

“Don’t let people know your spending plans as this makes you an easier target for criminals.”

While keeping your year-end stokvel payout safe and secure was important, Palani urged stokvel members to also think about their long-term financial security.

“While it’s tempting to use your stokvel payout for holiday festivities and immediate gratification, think about the potential this money presents for longer-term financial security.”

The Star

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