Johannesburg - South Africa’s banks have lost tens of millions of rand after an “unauthorised international organisation” hacked the card details of fast food restaurant customers, according to Payments Association of South Africa.
“There’s not a single bank that hasn’t been affected,” PASA Chief Executive Officer Walter Volker said in a phone interview today.
“We first detected higher volumes of fraud early in the new year.”
The syndicate probably loaded software intended to damage computers onto a server at fast food outlets, before capturing data stored on the magnetic strip of a bank card.
It then either produced its own fraudulent cards or sold the compromised data to a third party, Volker said.
Standard Bank Group Ltd., Africa’s biggest lender, is aware of the breach and is trying to limit its potential exposure, spokesman Ross Linstrom said in an e-mailed statement.
The fraud affects its debit, credit and check card customers, he said.
Hundreds of thousands of customers have probably been affected by the fraud, which has been traced back to Europe, according to Volker.
Some of the stolen funds have been spent using compromised cards in the US, he said.
“These guys are quite clever at hiding their tracks because they go through multiple service providers,” Volker said.
“The syndicates could be anywhere in the world.”
Burger King Worldwide Inc., which opened its first South African restaurant in Cape Town in May, hasn’t been affected by the security breach, according to Jaye Sinclair, chief executive of the company’s local unit. McDonald’s Corp., which has been operating in Africa’s biggest economy since 1995, hasn’t detected any increase in South African bank card fraud in the past three months, a spokeswoman said by phone.
Famous Brands Ltd., the South African operator of Steers burger chain and Debonairs pizzas, hasn’t noticed any fraud at a wholesale level, though couldn’t comment on its franchised outlets, Chief Operating Officer Darren Hele said by phone.
Absa Group Ltd., the South African bank controlled by Barclays Plc, and Nedbank Group Ltd., didn’t respond to phone calls seeking comment. FNB, part of FirstRand Ltd., declined to comment. - Bloomberg News