ATM-related crime increases, losses of almost R900 mil

When all categories of ATM-related crime across the country are considered, Limpopo seems to be less affected than Gauteng, Western Cape and KwaZulu-Natal, among others.
Maphure Manamela of the Provincial Police Communications Centre informed that the province does not necessarily have a huge challenge with regards to such criminal trends as the Police continuously raise awareness among community members about ATM safety.
She once more cautioned citizens to be alert at all time when using an ATM and to avoid accepting assistance from strangers. People should also avoid withdrawing large amounts of cash at ATMs to avoid being robbed, she indicated.
The South African Banking Risk Information Centre (Sabric) on behalf of the banking industry recently released its annual crime statistics 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,” a press release quoted Sabric Chief Executive Officer Kalyani Pillay to have said.
Combined gross card fraud losses on South African issued cards saw an 18% increase from 2017 to 2018, totalling R873 394 351, with credit card fraud increasing by 18,4% and debit card fraud increasing by 17,5%.
Card Not Present (CNP) fraud on South African issued credit cards remained the leading contributor to gross fraud losses in the country, accounting for 79,5% of all losses. CNP debit card fraud showed the greatest increase in losses at 62,3%, due to the enablement of CNP transactions on debit cards.
“We have seen a sharp increase in phishing 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,” Pillay said.
In 2018, lost and/or stolen debit card fraud amounted to 42,5% 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. Sabric therefore urged 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 applications, 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%. Mobile banking incidents showed an increase of 100%, with gross losses of R28 941 040, while online banking incidents showed an increase of 37,5% with gross losses of R129 002 523. Banking applications incidents increased by 55,4%, 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 11 077 incidents.
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 e-mails,” Pillay warned.
She added that Sabric was pleased that cash in transit (CIT) robberies had decreased by 22% from 376 to 292 incidents from 2017 to 2018. Cash losses also showed a decrease of 22% for the same period.
In conclusion, Gauteng remains the most prominent province where associated robberies are committed due to the higher concentration of branches and ATMs. Associated robbery at the branch after making a withdrawal is the most prominent modus operandi. Associated robbery at the branch before making a deposit is the second most prominent while incidents at the ATM after making a withdrawal and before making a deposit has shown an increase and is concerning.
“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,” the statement read.

Story: RC Myburgh
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