Hawks arrest two for rigging a Yoco card payment machine, which the company says is ‘near impossible’

In what card machine company Yoco described as a “near-impossible” fraud, two men have allegedly managed to divert R1.2-million from card transactions from an Eastern Cape hotel owner to their own bank account.

The Hawks said on Tuesday they were investigating several other cases and that more cases are also before court.

Dylan “Buzz” Strydom (27) from Komani was arrested in September on fraud charges for allegedly selling a rigged Yoco machine to the owner of the hotel, based in Tsomo in the Eastern Cape, for R3,500. It was set up in a way that the money from sales that went through on that machine was deposited into the alleged fraudsters’ account and not that of the business. 

This past weekend the man who allegedly owned the account into which the money was deposited, Mkhululi Vena (41), was also arrested.

Vena appeared before the Mthatha Specialised Commercial Crimes Court on Monday and has provisionally been charged with fraud. He has been released on bail of R1,000. 

Strydom and Vena are due back in court on 22 January. 

Hawks spokesperson Ndiphiwe Mhlakuvana said it is alleged that the complainant – the Tsomo hotel owner – was approached by someone who introduced himself as an employee of Yoco, a mobile speedpoint machine company. 

An official response from the company confirmed that Yoco worked with the Hawks and provided key transactional information, including statements and account details relevant to the investigation. 

“This collaboration was crucial in the recent arrest,” the company said.

“The suspects are reported to have sold three (3) speedpoint machines for R3,500 to the complainant. It is further alleged that after a few months of using these speedpoint machines, the complainant realised that the sales money was not going into their business account and decided to open a case of fraud with the Hawks,” Mhlakuvana said.

Mhlakuvana said the Hawks’ investigations showed the bank account into which the sales money was going belonged to Vena, who was living in East London. 

“Further investigations established that the suspect colluded with Strydom to defraud the complainant.”

The transactions, worth R1.2-million, had taken place between July and September 2023.

The provincial Head of the Hawks, Major General Mboiki Obed Ngwenya, applauded the swift response and proper use of expert investigation skills by the team.

Yoco said in its written response to questions that it was nearly impossible to rig a Yoco machine in this way. 

“Yoco devices are engineered with robust security features to prevent unauthorised manipulation. The only scenario in which funds could be redirected involves a fraudster impersonating a Yoco representative during the setup process and deceitfully entering incorrect banking details. Merchants are advised to ensure all setup procedures are conducted through verified Yoco channels,” is said. 

The company also gave the following safety advice:

“To confirm the authenticity of a Yoco device, ensure it is purchased directly from Yoco or an authorised distributor. Each Yoco device comes with unique identifiers which can be authenticated through the Yoco app or by contacting Yoco’s customer support for verification.

“It’s nearly impossible to redirect funds on a genuine Yoco Device without authorised access from the merchant to the Yoco Profile linked to the device. Even if access were gained, such actions would leave a digital footprint, which helps to detect and prevent fraud.” DM