COIDA: Scam alert re Letters of Good Standing

COIDA: Scam alert re Letters of Good Standing

• 19 November 2025
• Law
• South African Accounting Academy

Summary:

The Department of Employment and Labour (DoEL) has warned that fraudsters are sending out scam emails regarding a company's Compensation for Occupational Injuries and Diseases Act (COIDA) Letter of Good Standing (LOGS) that appear to be from the Compensation Fund, threatening business deregistration, blacklisting, or legal action for "outstanding" fees.

Article:

The scammers inform clients that their company has been put on deregistration process due to failure to comply with the Compensation for Occupational Injuries and Diseases Act (COIDA), and they request urgent payment to prevent deregistration.

The emails, which, on the face of it, looks like the email originated from the Compensation Fund, contain fraudulent banking details or links to fake websites that look official. These are designed to steal the recipient's personal information and money. 

Employers are warned to avoid making unusual payments and to verify all communications directly with the official Department of Employment and Labour (DoEL).

Clients may become very upset with practitioners because they might think that the practitioners are not doing their jobs properly. Practitioners are advised to liaise with and warn their clients against scams like these.

How to Protect Yourself:

• Verify Authenticity: Always verify the authenticity of any request for payment or information directly with the Compensation Fund using the official contact details, not those provided in the suspicious communication.
• Use Official Channels: Access all COID services, including submitting returns of earnings (ROE) and obtaining a LOGS, through the official Department of Employment and Labour ROE Online website at https://cfonline.labour.gov.za/OnlineSubmissions/ 
• Check Banking Details: Ensure all payments are made only into the official bank accounts designated by the Department of Employment and Labour.
• Validate the LOGS: A legitimate LOGS contains specific security features (DEL logo, barcode, issue date, expiry date, watermarked South African Coat of Arms, and the Compensation Commissioner's signature) and can be verified online using the certificate number at the official Compensation Fund verification portal.

Report Fraud: Forward any suspicious emails to the Compensation Fund's fraud hotline at [email protected] or contact the call center on 0860 105 350. 

Click here to download the access an example of this scam email:

https://mcusercontent.com/7af202f977bc5dbad675398d7/images/79bc5978-0922-3273-3947-78f0487e8b8e.png 

Relevance to Auditors, Independent Reviewers & Accountants:

• The COID Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an employer, you need to obtain a letter of good standing, if needed.
• Practitioners should be aware of the latest scams that fraudsters use to solicit money from unsuspecting customers.

Relevance to Your clients:

• As an employer, your clients need to obtain a letter of good standing, if needed.

• Your clients should be aware of the latest scams that fraudsters use to solicit money from unsuspecting customers.

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