How South African youth can avoid job scams and thrive in entrepreneurship

In a digital-first age, South African youth are both empowered and vulnerable, especially as they build livelihoods online.

With ambition and connectivity so intertwined, the risk is more than personal; it’s become systemic. Which means, it’s time for our youth to sharpen up.

Financial scams targeting the youth are on the rise. From fake job offers and bogus training schemes to fraudulent charity gigs that ask for ‘registration fees,’ the danger is real. What makes these scams particularly cruel is that they not only steal money, but also time, trust, and sometimes a person’s self-belief.

Despite the challenges, young people are hopeful and eager to better their lives, which makes them vulnerable to scams disguised as opportunities. We’re seeing more and more cases where young people are being targeted through social media, WhatsApp job groups, and even fake recruitment portals.

Common scams to watch out for:

1. Fake job offers with upfront fees

You apply for a job online and receive a congratulatory message confirming that you have been selected. But first, before accepting the offer, you’re asked to pay a ‘registration,’ ‘training,’ or ‘uniform’ fee. Once you pay, the job disappears.

Tip: no legitimate employer will ask for money before you’ve started working. If they do, it’s likely a scam.

2. ‘Too good to be true’ Work-from-home gigs

You’re offered big money for simple tasks like typing, data entry, or social media management. But before starting, you're required to buy a ‘starter kit’ or software. After paying, the ‘employer’ vanishes.

Tip: Always research the company. Look for reviews, and check if it’s registered with the Companies and Intellectual Property Commission (CIPC).

3. Fake entrepreneurship/ investment opportunities

Scammers promise fast profits from ‘business mentorship,’ ‘crypto investments’, or ‘import-export schemes’ but... only if you pay to join their programme.

Tip: Real business mentors don’t demand fees upfront over WhatsApp or Instagram. Ask for proof of their credentials and verified success stories.

4. Personal loan scams

Scammers promise guaranteed loan approval, often with no credit checks, to lure in individuals needing quick cash. But before releasing the loan, they ask for an upfront payment disguised as ‘admin fees’ or ‘origination fees’. Once paid, the scammer vanishes, and the loan never appears.

Tip: Always verify the loan provider with the National Credit Regulator (NCR), and they must be registered and have a valid National Credit Regulator Credit Provider number. Make sure the registration is active and not expired, and never pay any upfront fees before receiving the loan.

Scammers use urgency to make you act before you think. If someone’s pressuring you to pay today or miss out, that’s a clear red flag.

Practical Tips to Stay Safe

• Google is your friend: search the name of the company + ‘scam’ or ‘complaints’
• Speak up: ask family, teachers, mentors, or even online forums before you commit
• Verify job ads: use reputable job boards and check company profiles on LinkedIn
• Protect your documents: don’t send ID copies, bank info, or selfies to unverified people
• Report scams: don’t let others fall into the same trap. Use platforms like the South African Fraud Prevention Service (SAFPS) or report it to your local SAPS

Youth Month is about recognising the power of young people in South Africa. But it’s also a reminder that youth are often targeted precisely because of their potential. By staying informed and cautious, you can protect yourself and your peers from exploitation.

We want to empower youth with knowledge so they can spot the warning signs early. Don’t let anyone take advantage of your ambition or be dejected at the vastness surrounding this type of criminal activity. Real opportunities do exist and uplift – they just don’t demand monetary exchange prior to signing on the proverbial dotted line.

* Nyati is a consumer financial education specialist at Momentum Group.

PERSONAL FINANCE