COIDA: Compensation Fund Warns of Letter of Good Standing Scams

Posted 19 November 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The Department of Employment and Labour (DoEL) has issued an urgent alert regarding fraudulent emails targeting employers in relation to their compliance status under the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993 (COIDA).

In terms of the regulatory framework for maintaining a Letter of Good Standing (LOGS) with the Compensation Fund, fraudsters are circulating emails that falsely claim companies are undergoing deregistration or blacklisting due to “outstanding” fees. These communications often mimic official Compensation Fund branding and include fraudulent banking details or links to phishing websites designed to harvest personal information and illicit payments.

The DoEL advises that any communication demanding urgent payment to prevent deregistration should be treated with suspicion. Employers and practitioners must verify the authenticity of such notices directly through the official Department of Employment and Labour channels before making any payments or disclosing sensitive data.

Reporting and Verification

  • Suspicious emails should be forwarded to the Compensation Fund’s fraud hotline at [email protected].
  • The official call center can be reached at 0860 105 350 for verification of compliance status.

Click here to view an example of the scam email.

What this means for you, your business, or your clients

  • For yourself: Verify the source and digital signature of any COIDA-related compliance notices before advising on payment or status updates.
  • For your business: Update internal financial controls to ensure that any payment requests for COIDA assessments are cross-referenced against the official Compensation Fund portal or verified via the 0860 105 350 call center.
  • For your clients: Proactively notify clients of this specific scam to prevent unauthorized payments to fraudulent bank accounts and potential data breaches.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-letters-of-good-standing

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