What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

Romance on the cards this Valentine’s Day?

ARTICLE BY

  • Tarina Vlok

SHARE THIS POST

Guard against financial losses, especially from ‘Tinder swindlers’

February 2022: Romance does not come cheap this year, with billions expected to be spent around the 14th of February all over the world on high ticket gifts. But such a high-grossing calendar day brings opportunity aplenty for scammers and con artists to seize the day.

The latest Netflix craze, “The Tinder Swindler”, follows the story of Simon Leviev, a trickster who preyed on women looking for love by posing as a billionaire son of a Russian-Israeli diamond tycoon. He bought the women lavish goods, flying them by private jet to luxury hotels around the world and professed his love – then demanding they send him money.

“There are many lessons for those in love to learn from this show,” says Tarina Vlok, MD of Elite Risk Acceptances, a subsidiary of Old Mutual Insure. “Most importantly, remember if you make use of dating apps, short-term insurance policies will more than likely not compensate you for any financial loss you may suffer as a result of a dating app scam.”

Locally, there are many examples of scammers preying on lonely hearts, making off with millions in the process. Last year a Cape Town-based businesswoman and owner of a successful public relations firm lost R5 million to a romance scam.

Furthermore, a USA study suggests that Americans will lose $800M to romance scams in 2022.

“Although there is a perception that scammers predominantly use online dating apps, the reality is that there are scammers everywhere. Many thieves even scour social media sites and the internet, waiting to make a move. Syndicates for example can easily get your location if you post a picture of your new and shiny engagement ring online using popular hashtags, and plan a robbery,” says Vlok.

She says that theft and con-artistry is a huge risk for Valentine’s Day in South Africa – whether online or in real life – especially for those with deep pockets and looking for love, and its best to take adequate steps to guard against it.

“Lovers hopeful for a bit of romance this Valentine’s Day need to be careful of becoming targets, especially because it is easy to let down your guard, whether you are feeling in love and wanting to share your new gift like a diamond ring with the world, or if you are vulnerable and recently experienced a breakup.

“The luxury industry is booming; with handbags, watches and diamonds all in demand, with jewellery sellers reporting a surge in sales.  But a major pitfall is when lovers get swept up in the moment, and fail to adequately and immediately insure these items. Or they underinsure their purchase. This is when it becomes especially painful to experience a financial loss like theft,” explains Vlok.

Luxury sales are up as per Richemont, Burberry and Prada earnings’ reports. On top of this, De Beers recently pushed through one of its most aggressive diamond price increases in recent years as the world’s biggest producer of stones cashed in on a buying frenzy for uncut gems.

So how can lovers, hopeful for a luxury gift, whether in the form of a diamond ring, Burberry handbag, Prada shoes or even a Cartier watch from their beloved, protect their hearts, and their pockets, this Valentine’s day? Below are Vlok’s top tips.

  1. Don’t tell anyone how much your gift cost. Keep this between you and your insurer only and ensure you can prove ownership (keep the valuation certificate from the jeweller in a safe place, or send a copy of the receipt to your broker or insurer).
  2. Make sure that you keep these items safe. Talk to your broker or insurer to find out if you must keep them in a locked safe while they are not worn.
  3. Remember that any gift that you buy, belongs to you until you hand it over to the recipient. If your beloved does not share your home, please talk to your broker or insurer to find out how you can combine your insurances if you wish to.
  4. Don’t share pictures online, on social media or on Whatsapp groups of your new gift, especially if you got engaged or celebrated an anniversary and were lucky enough to get a new sparkly piece of jewellery. This information is easy for criminals to get their hands on, and then to use against you.
  5. If you have a designer piece of jewellery, talk to your insurer about the possibility of having any repairs or replacements done by your jeweller of choice in the event of a claim.
  6. If you make use of dating apps, please be vigilant. Short-term insurance policies will more than likely not compensate you for any financial loss you may suffer as a result of a dating app scam.

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.