A group of people link up and decide to set up a stokvel where they give each other money on a monthly basis. Everything goes on well with each member in the group receiving R5.000 per month from the 5 members in the group.
The last member in the group receives his share of R25.000 at the end of the stokvel cycle and at face value the coast is clear? Well not so clear as everyone in the group knows that he has received R25.000 cash! When more people know that you have cash, the amount, your location and more personal information then you open up yourself to robbery!
This fraud is affecting many members in South Africa and recently it was imported into Zimbabwe. In Marlborough, Harare a group of friends teamed up to contribute funds and share. The money was in hard currency and as soon as the last person in the group received his share of US$7.000, armed robbers pounced on him!
Joining a stokvel or mukando savings club? Make use of formal banking systems…include cash at your own peril. This scheme is bound to affect many unsuspecting members of the public as they use informal saving schemes.
Take measures to participate with people whose backgrounds you know plus reduce risks through formal banking systems use. Banks have the disadvantage of bank charges but protect you from possible losses from robbers from within the group.
