COIDA: Compensation Fund Issues Fraud Alert on Service Offerings

Posted 21 November 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The Compensation Fund has issued a formal alert regarding fraudulent entities posing as official representatives to offer services under the Compensation for Occupational Injuries and Diseases Act.

In terms of the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993 (COIDA), the Compensation Fund (CF) has identified a trend of unscrupulous companies and individuals defrauding employers. These entities often disguise themselves as representatives of the Fund or as licensed companies authorized to perform COID services.

The fraudsters have been observed using the official letterheads of the Department of Employment & Labour and the Compensation Fund to offer various services. The Fund clarifies that Compensation Fund services are provided at no cost to employers. Furthermore, there are no licensed parties authorized to provide COID services other than the following mutual associations:

  • Rand Mutual Assurance (RMA); and
  • Federated Employers Mutual Assurance Company (FEMA).

To ensure compliance and prevent financial loss, employers must verify the authenticity of any Letter of Good Standing (LOGS) received. Verification can be performed through the official Compensation Fund portal at the following link: Verify Letter of Good Standing.

Click here to download the Official Compensation Fund Scam Alert.

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

  • For yourself: Exercise professional skepticism when presented with documentation or service offers from third parties claiming to represent the Compensation Fund, and use the official verification portal for all Letters of Good Standing.
  • For your business: Review internal payroll and compliance workflows to ensure that no fees are paid for services that the Compensation Fund provides for free, and confirm that any external insurance providers are limited to RMA or FEMA.
  • For your clients: Advise clients to immediately cease engagement with any unauthorized consultants claiming to be Compensation Fund representatives and assist them in verifying their current COID status through the Department of Employment & Labour’s official channels.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-service-offerings

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.