Written by Umamah Bakharia
The rapid rise in the cost of living, job losses, and low income mean South Africans struggle to survive financially. And that is making them more vulnerable to fraud.
The Direct Selling Association of South Africa has warned that in their desperation to make ends meet, South Africans are resorting to get-rich-quick schemes that promise high returns, leaving no thought for long-term, stable and safer income solutions.
Speaking to Radio Islam, e Secretariat: Direct Selling Association of South Africa, Imtiaz Ebrahim says people are becoming vulnerable due to the high rising costs of living. “We finding South Africans elsewhere to supplement their income,” he says.
According to the Momentum- UNISA index that was recently published, 14% of all households are engaged in ‘side-hustles’. “It just shows the need for alternative income earning opportunities,” says Ebrahim.
The Direct Selling Association of South Africa advises vetting the process and companies when looking for an alternative income. Usually, people become victims of schemes when they don’t understand the difference between direct selling and pyramid scheme.
“The main difference is that direct selling is based on the sale of a product or a service,” says Ebrahim. Recently, schemes have increased rapidly through the pyramid and Ponzi schemes.