Summer holidays may be a time for relaxing, but don’t let down your guard when it comes to banking safety – after all, this is a favourite season for criminals precisely because you are more relaxed, spending more, and shops and malls are busier.
ATM FRAUD
The main type of fraud Capitec encounters is card swopping or card theft, spokesman Charl Nel says. This occurs when a fraudster approaches you at an ATM and watches you enter your PIN. The fraudster then distracts you and takes your card, or swops it with another one. You believe your card has been retained by the ATM or, in the case of a swopped card, that your card is not working.
“While you attempt to figure out how to get your card back from the ATM or why your PIN is not working, the criminal visits another ATM with your card, enters the PIN and withdraws the available funds. Card swopping or theft is difficult to prevent, because the real card and PIN are used. The transaction thus appears normal to the bank.”
To prevent this, Nel advises you to be vigilant at ATMs and never allow a stranger to approach or disturb you. If you are disturbed, cancel your transaction immediately and leave the ATM. “Most importantly, you should never let anyone see you entering your PIN. You should also remove any slips that may still be in the machine before entering your card, as fraudsters will often claim they left their slip in the ATM to gain access to the machine while you are entering your PIN.”
Distracted holidaymakers are like pollen to bees when it comes to fraudsters, who swop cards, skim cards or vandalise ATMs. If your card appears to get stuck, they may offer you the use of a cellphone to cancel your card and then dial an accomplice who claims to be a bank official.
The criminal advises you to key in your PIN and press the cancel button to retrieve your card. This won’t work, but while you are entering your PIN, the criminal memorises it and removes your card once you have left.
“If you’ve been defrauded, contact your bank immediately to cancel your card, and alert the closest security guard,” Nitesh Patel, the head of customer financial solutions and personal banking at Standard Bank, says. “If your card has been cloned and funds withdrawn from your account, register your claim with your bank as soon as possible.
“By familiarising yourself with potential dangers and staying especially cautious at crowded holiday destinations, you should be able to have a fraud-free festive season.”
Act immediately if your card is lost or stolen. “The sooner you report a theft, the greater the prospect of the transaction being reversed.”
ONLINE FRAUD
Online shopping has its unique challenges. Professional services firm Deloitte has some tips to stay safe online.
“Many people are often totally oblivious of the fact that they have been scammed due to the sophistication of some of the tactics being used. But in many cases it is often just a matter of a user not having updated their security software, or using outdated software that has since been improved,” the firm’s Evert Smith says.
There are other practical steps to take:
* Buy only from reputable online stores.
* Read the terms and conditions about returns and refunds carefully.
* Before you commit to a payment or give personal details, make sure the page is secure (has https:// in the URL).
* Do not shop from an unknown computer or mobile device.
* If possible, use a reloadable cash card for online purchases. If the card details are stolen or hacked, the only losses incurred are from the card and not from your bank account.
TRAVEL AND WORKPLACE SCAMS
Common scams to be wary of at this time of year are travel and holiday accommodation scams, says Nitesh Patel, the head of customer financial solutions and personal banking at Standard Bank.
Check that the advertised holiday accommodation you are interested in does, in fact, exist. Try to negotiate a smaller deposit and that you pay the balance on the day you get access to the accommodation – this will limit your losses if it is a scam.
If you have been scammed, report the perpetrator to the police as soon as possible. “Unfortunately, it is almost impossible to get your money back, but by reporting them, at least you can stop others from falling prey to the scam,” Patel says.
Workplace theft also increases over the festive season, Patel says, because people typically make more online payments. “Work is a perfect environment for a would-be fraudster to gain access to your personal details. Most of us have a personal computer on our desks that we routinely use to access our internet banking.”
* Don’t allow open access to your PC, and never share your password with co-workers.
* If you get a new computer, make sure the hard drive on your old system is permanently erased.
* Carry only the personal information and bank cards that you really need for your daily routine.
* Never leave your wallet or purse on your desk.
If you have been defrauded, go to your manager or boss, and to the police, and report the crime. If your cards have been cloned, make a list of all unauthorised transactions.
“Give your bank as much information as possible to assist them with their investigations. Unfortunately, if someone has accessed your account online because you compromised your log-in details and PIN, the bank may not be able to assist you in recovering all the funds,” Patel says.
IDENTITY THEFT
Identity theft is a form of fraud in which someone pretends to be you by assuming your identity. It can be devastating, and it can take months before you find out – by which time a lot of damage may have been done to your reputation and credit record.
Standard Bank says about 3 600 cases of identity theft were reported last year, and the number is expected to rise, while Wesbank says it is estimated that identity theft costs South African businesses more than R1 billion a year, and those who are responsible rarely get caught.
Criminals will typically use an ID document with a changed photo, open bank accounts, and then use that ID number to buy on credit and take out loans, without ever repaying them.
“Customers need to be on their guard,” Patel says. “It’s easy to throw away documents containing bank account details or other personal data, not realising the implications, and the long-term costs could be great.”
Wesbank points out that it is up to you to prove any fraud in a transaction where there has been identity theft. According to the bank’s records, you are the person responsible for the transaction, such as the repayment of a loan. The responsibility falls solely on you, because the relevant banks and credit bureaus will not know which loans are fraudulent.
The best bet is rather to be safe than sorry. To avoid being a victim of identity theft:
* Shred all documents that contain your personal information and do not throw anything away that someone else could use to impersonate you – expired ID documents, ID documents that have been reported lost and then found, or renewed, temporary driving licences and passports. Also take care of bank statements, payslips, and any account statements that arrive by mail. Even expired bank cards and old cheque books can be used to steal your identity. These should be filed away securely or destroyed.
* Make sure all your accounts have strong passwords that are not easy to decipher.
* Never respond to an email or SMS that asks you to insert or update your personal and banking information by clicking on a website link provided in the content of the message.
* If an unknown person phones you and asks for personal information, offer to call them back to verify that the number they have given you, in fact, belongs to the correct company.
* Be careful with the type of information that you share on social media sites and make use of privacy settings.
* Carry identification documentation only when it’s absolutely necessary and keep these documents safely locked away when not in use.
* Do not get taken in by scammers who send messages telling you that you have won a prize or have inherited money.
* Periodically examine your credit report (available from the credit bureaus – see contact details below) to ensure that there has been no unauthorised activity in your name. You are entitled to one free credit report a year from each credit bureau.
* Ask the credit bureau to put an alert on your account if it is approached by credit providers.
If you suspect that your financial information has been compromised, act immediately. The South African Fraud Protection Service suggests you:
* Contact the fraud prevention division of the major credit bureaus and ask them to place a fraud alert in your file, as well as a request that creditors call you before opening or changing accounts.
* Contact your creditors for information on accounts that may have been tampered with. Speak to the security or fraud department and follow up with a letter. It is important to follow up with credit card companies in writing, because that is the consumer protection procedure for resolving errors on credit card statements. Immediately close accounts that have been tampered with and open new ones with new PINs and passwords.
* File a report at your local police station or the police station in the area where the identity theft took place. Get a copy of the police report in case the bank or credit card company need proof of the crime.
REPORT FRAUD
If you have been defrauded or you suspect that your identity has been stolen, report it to the police, the South African Fraud Prevention Service and one of the three large credit bureaus:
* Southern African Fraud Prevention Service: 0860 010 1248, www.safps.org.za;
* TransUnion: 0861 482 482, www.transunion.co.za;
* Experian: 0861 10 56 65, www.experian.co.za; and
* Compuscan: 0861 51 41 31, www.compuscan.co.za