Sabric, the South African Banking Risk Information Centre, on behalf of the banking industry recently released its annual crime stats for 2018.
“We are concerned about some of the increases, which clearly reflect that criminals will take every opportunity to get their hands on bank customers’ money,” said Sabric CEO, Kalyani Pillay.
Card Not Present fraud on South African issued credit cards remained the leading contributor to gross fraud losses in the country, accounting for 79.5 per cent of all losses.
CNP debit card fraud showed the greatest increase in losses at 62.3 per cent, due to the enablement of Card Not Present transactions on debit cards.
“We have seen a sharp increase in Vishing incidents, where criminals phone bank customers, lead them to believe that they are speaking to the bank or a legitimate service provider and use social engineering tactics to manipulate them into disclosing their confidential bank card details, as well as other personal information.
“A bank will never call you to ask for this information. If you receive such a call, put the phone down immediately,” says Pillay.
The report showed that in 2018, lost and/or stolen debit card fraud amounted to 42.5 per cent of all debit card fraud and bank customers continue to fall victim to fraud at ATM’s while transacting.
“Criminals approach victims under the pretext of being helpful, and in many instances even pose as a bank official. They then steal the victim’s banks card and shoulder surf to obtain the PIN,” said Pillay.
“Sabric therefore urges bank clients to never accept assistance from anyone at an ATM, no matter how friendly or helpful they may appear.”
In 2018, 23 466 incidents across banking apps, online banking and mobile banking amounted to R262 826 888 in gross losses.
“It is concerning that incidents across these platforms increased by 75,3 per cent. Mobile banking incidents showed an increase of 100 per cent, with gross losses of R28 941 040, while online banking incidents showed an increase of 37.5 per cent with gross losses of R129 002 523.
“Banking app incidents increased by 55.4 per cent, with gross losses of R104 883 325 for the same period. SIM swops in the mobile banking space saw an increase of over 200% to 11077 incidents.”
Pillay said criminals are very adept at understanding psychology and will use social engineering tactics to exploit any human vulnerability to harvest confidential information like a PIN or a password in order to steal cash.
“When it comes to online banking, beware of Phishing emails that request that you click on a link. The link directs you to a spoofed website designed to obtain, verify or update contact details or other sensitive financial information. Never click on links in unsolicited emails,” said Pillay.
“We are pleased that Cash in Transit robberies decreased by 22 per cent from 376 to 292 incidents from 2017 to 2018. Cash losses here also showed a decrease of 22 per cent for the same period. Sabric will continue to work closely with law enforcement and other partners to address the scourge and ensure further declines.”
“To have any significant impact on the fight against all of these crimes, the collective efforts of banks, bank customers and law enforcement are imperative,” said Pillay.
Sabric offers the following tips when using the ATM:
- If you think the ATM is faulty cancel the transaction immediately, report the fault to your bank and transact at another ATM.
- Avoid ATMs that are dimly lit or surrounded by loiterers, and never allow your children to draw money using your card, since they’re the most vulnerable to perpetrators.
- Have your card ready in your hand before you approach the ATM to avoid opening your purse, bag or wallet while in the queue.
- Be cautious of strangers offering to help as they could be trying to distract you to get your card or PIN.
- Follow the instructions on the ATM screen carefully.
- Only punch in your PIN once prompted by the ATM.
- Report suspicious items or people around ATMs to the bank.
- Choose familiar and well-lit ATMs where you are visible and safe.
- Report any concerns regarding the ATM to the Bank. Toll free numbers are displayed on all ATMs.
- Be alert to your surroundings. Do not use the ATM if there are loiterers or suspicious people in the vicinity. Also take note that fraudsters are often well dressed, well-spoken and respectable looking individuals.
- If you are disturbed or interfered with, whilst transacting at the ATM, your card may be skimmed, by being removed and replaced back into the ATM without your knowledge. Cancel the transaction immediately and report the incident using your bank’s stop card toll free number which is displayed on all ATMs, as well as on the back of your Bank card.
- Should you have been disturbed whilst transacting, immediately change your PIN or stop the card, to protect yourself from any illegal transactions occurring on your account.
- Know what your ATM looks like so that you can identify any foreign objects attached to it.
- Do not ask anyone to assist you at the ATM, not even the security guarding the ATM or a bank official. Rather go inside the bank for help.
- Never force your card into the slot as it might have been tampered with.
- Do not insert your card if the screen layout is not familiar to you and looks like the machine has been tampered with.
- Don’t use ATMs where the card slot, keypad or screen has been tampered with. It could be an attempt to get hold of your card.
- Your PIN is your personal key to secure banking and it is crucial to keep it confidential.
- Memorise your PIN, never write it down or share it with anyone, not even with your family member or a Bank official.
- Choose a PIN that will not be easily guessed. Do not use your date of birth as a PIN.
- Cover your PIN when punching the numbers even when alone at the ATM as some criminals may place secret cameras to observe your PIN.
- Don’t let anyone stand too close to you to keep both your card and PIN safe.
- Some fraudsters wait until you’ve drawn your cash to take advantage. Be wary of people loitering around the ATM and ensure that you are not followed.
- Take your time to complete your transaction and secure your card and your cash in your wallet, handbag or pocket before leaving the ATM.
- Set a daily withdrawal limit that suits your needs (the default amount is set at R1000.00), to protect yourself in an event that your card and PIN are compromised.
- Check your balance regularly and report discrepancies to your bank immediately.
- Avoid withdrawing cash to pay for goods/services as your Debit Card can be used for these transactions. You can use your Debit Card wherever the Maestro/Visa Electron logo is displayed.
- After you have completed your transaction successfully, leave the ATM area immediately. Be cautious of strangers requesting you to return to the ATM to finalise/close the transaction because they are unable to transact. Skimming may occur during this request.
- Prioritise the setting of daily withdrawal and transaction limits.
- Set a daily ATM withdrawal limit that suits your needs.
- Transaction limits should also be in line with daily spending.
- Set limits on international transaction expenditure.
- Inter account transfer limits should also be managed wisely.
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