How to Spot Fly By Night Security Companies

By: JK Armed response
July 22, 2026

South Africa’s private security sector is the fourth-largest globally, with over 2.5 million registered guards. However, this massive demand has created a dangerous sub-sector of fly by night security companies. These unregistered operators deliberately avoid statutory costs and regulatory compliance to offer unrealistically low quotes.

Hiring an unregistered security company is a direct violation of South African law. Clause 38(3)(g) of the Private Security Industry Regulation Act (Act 56 of 2001) makes it a criminal offense for any consumer to knowingly or carelessly hire non-compliant security services. Property owners caught using these illegal operators face heavy financial fines or up to 24 months of imprisonment.

Beyond the immediate legal threat, these illegal operators actively compromise your physical safety. Unregistered guards are typically unscreened, untrained, and underpaid. This exploitation drastically increases the risk of criminal collusion on your property and immediately voids your commercial or residential insurance policies in the event of a break-in.

Understanding these severe consequences is the first step toward securing your business. Explaining exactly how these illicit operators function reveals why that “cheap” quote is mathematically impossible to sustain legally. Companies bypass the Basic Conditions of Employment Act and Sectoral Determination 6, stripping guards of minimum wage and basic benefits.

This systematic exploitation leads directly to high staff turnover, guards sleeping on duty, and severe vulnerability to bribery. You are essentially paying to place untrained liabilities on your premises. To protect your assets and maintain your legal standing, you must learn to identify these illegal outfits before signing a contract.

1. How to Spot a Fly By Night Security Companies (Key Red Flags)

Identifying a non-compliant operator requires looking past their marketing and examining their operational footprint. These red flags indicate you are dealing with a high-risk provider.

Mathematically Impossible Pricing A heavily discounted quote is the most obvious warning sign. Compliant security companies must pay minimum wages mandated by Sectoral Determination 6. They must also contribute to the Private Security Sector Provident Fund (PSSPF). If a quote falls below the statutory minimum cost per guard, the company is operating illegally.

Missing or Expired Documentation Legitimate companies maintain a transparent administrative trail. Fly-by-night operators cannot produce a valid, up-to-date Private Security Industry Regulatory Authority (PSIRA) certificate of good standing. They will often present expired certificates or claim their paperwork is temporarily “pending.”

Unvetted and Undocumented Personnel Professional firms conduct rigorous background checks and verify the PSIRA registration of every employee. Illegal operators bypass this costly process, deploying guards with no criminal clearance. This practice directly places your staff and property in the hands of unverified individuals.

Ghost Infrastructure Compliant security operations require significant physical infrastructure. Illicit companies operate from mobile phones and temporary residential addresses. They lack dedicated 24/7 control rooms, standardized branded uniforms, and reliable tactical response vehicles.

Recognizing these operational failures is crucial, but the true danger lies in how the South African legal system views your relationship with these entities.

2. The Severe Legal and Financial Risks to You (The Client)

The law places an explicit duty on you, the consumer, to verify your security provider. Ignorance of a company’s compliance status is not a valid legal defense in South Africa.

Direct Criminal Liability The PSIRA Act is unforgiving toward businesses that fuel the illegal security trade. Under Section 38(3)(g), utilizing an unregistered company constitutes a criminal offense. The law mandates that consumers make reasonable inquiries into the legitimacy of the security business before utilizing their services.

The Threat of Internal Collusion Security personnel are your first line of defense. When operators underpay their staff, they create disgruntled workers who are prime targets for criminal syndicates. A guard earning below minimum wage is highly susceptible to bribes, turning your security deployment into an inside threat.

Voided Insurance Claims South African insurance providers stipulate that properties must be protected by compliant, registered security firms. If a break-in occurs and investigators discover your security company was not PSIRA-registered, your claim will be rejected. You will bear the full financial burden of the loss.

To eliminate these risks entirely, you must implement a strict auditing process before awarding any security contract.

3. Problem-Solving: The 4-Step Vetting Checklist for Property Owners

Auditing a potential security partner does not have to be complicated. Following this specific checklist guarantees you only engage with legitimate, lawful providers.

Step 1: Independently Verify PSIRA Registration Never accept a printed certificate at face value. Request the company’s PSIRA registration number and verify it directly through the official PSIRA online portal. Check that both the business and the deployed officers are in good standing.

Step 2: Demand a COIDA Letter of Good Standing Ask for a valid Letter of Good Standing for Workmen’s Compensation (COIDA). If an unregistered, uninsured guard is injured or killed while patrolling your property, you could face devastating civil liability claims.

Step 3: Review Standard Operating Procedures (SOPs) Request documented SOPs outlining their firearm training, shift rotations, and tactical response protocols. Compliant companies will readily provide these manuals. Fly-by-night operations will not have them.

Step 4: Check for SASA Membership Ask for proof of compliance with the Security Association of South Africa (SASA). SASA members undergo rigorous, independent audits to ensure adherence to national legislation and fair labor practices.

Applying this checklist systematically filters out illegal operators, leaving you with reputable firms dedicated to genuine protection.

4. Why JK Armed Response is Your Shield Against Compliance Risks

At jkarmedresponse.co.za, we eliminate the legal and operational risks associated with private security. We manage the entire administrative burden of compliance, ensuring your property is secured by a highly trained, legally operating force.

Zero-Compromise Compliance We operate with absolute transparency. JK Armed Response maintains flawless standing with PSIRA, COIDA, and the PSSPF. We proactively provide our clients with all required compliance documentation before a contract is even signed. Every officer on your site is rigorously vetted, criminally cleared, and legally registered.

Fair Wages Mean Better Protection We firmly believe that highly motivated guards deliver superior security. JK Armed Response strictly adheres to all gazetted labor laws and Sectoral Determination 6 mandates. By paying our personnel fairly, we retain loyal, alert, and incorruptible tactical units who are genuinely invested in your safety.

Tactical Superiority and Readiness Unlike unregistered operators who cut corners, we invest heavily in continuous operational readiness. Our teams undergo regular tactical training and firearm proficiency drills. We operate from a fully equipped control room and deploy modern, reliable armed response vehicles to ensure rapid intervention.

Conclusion

Accepting the lowest quote from fly-by-night security companies is a financial and legal trap. It exposes your business to criminal charges, nullifies your insurance coverage, and places unvetted individuals on your property. Genuine security requires a foundation of legal compliance, fair labor practices, and rigorous training.

Do not gamble with your physical safety or risk 24 months of jail time by hiring unregistered operators. Protect your assets with a proven, lawful partner. Visit jkarmedresponse.co.za today to book a fully compliant, professional security risk assessment for your property.