THE South African Banking Risk Information Centre (SABRIC) is pleased that the banking industry has seen an overall decrease in card fraud.
In releasing its annual card fraud statistics, SABRIC has stated that credit card fraud has decreased by 28.6% from R353.3m in 2014 to R252.2m in 2015, with an increase of 8, 3 % for debit card fraud in the same period.
The banking industry attributes the overall decrease to various measures implemented to fight the scourge of card fraud. These measures include an improvement of internal systems and processes as well as the roll out of chip and PIN technology for debit cards.
“SABRIC provides the banking sector with an industry view of crime trends and facilitates a collective approach to combating card fraud,” said SABRIC CEO, Kalyani Pillay.
Card fraud is a national threat, with the most affected provinces being Gauteng, Western Cape and KwaZulu-Natal, with increases noted in the Eastern Cape and Mpumalanga.
Industry statistics indicate lost and stolen card fraud accounted for 46, 2% of debit card fraud losses reported during 2015. With the roll out of chip and PIN technology, criminals are reverting to card jamming and swopping at ATMs accompanied by shoulder surfing for PIN numbers. While credit card-related Card Not Present (CNP) fraud increased by 12, 6% from the previous year, it now accounts for 75% of losses relating to SA-issued credit cards which is of concern.
Counterfeit card fraud in respect of both credit and debit cards has decreased significantly. Pillay, however, cautions bank clients to protect their cards during the festive season as the risk of card skimming, especially at ATMs remains high.
Consider the following saftey tips when using your card during the festive season:
- Never accept assistance from strangers as they could be trying to distract you in order to get your card or PIN.
- Keep your PIN secret even from family members or bank officials.
- Should your card be retained in the ATM, block your card before you leave the site.
- Register for 3D secure before using your bank card online.
