Durban - Fraudsters who clone bank cards are on the increase, as a KwaZulu-Natal businessman found when someone went on a shopping spree, withdrew more than R35 000 from his bank, and indulged in lunches at a fast food outlet over four days.
Another victim’s credit card was swiped in Saudi Arabia for more than $1 500 (R14 000) - while he was sipping a beer in St Lucia.
The South African Banking Risk Information Centre (Sabric) has warned that counterfeit card fraud remained a national threat.
“Early indications in the first quarter of 2013 is that there is an increase when compared to the same period last year,” said Susan Potgieter, Sabric’s general manager for commercial crime.
From January 1 until April 30, Sabric recorded 154 card fraud-related arrests nationally.
Kloof businessman, Justin Dallas, said he was driving up to the KZN Midlands with his wife and had stopped at a garage in Cato Ridge for petrol when his card was cloned.
“The petrol attendant took my bank card to swipe and was standing just outside the car window,” Dallas said.
“He was fidgeting with the machine but kept looking up and smiling at me. He said the machine was faulty.”
He said seconds later the card machine was brought to him to enter his pin code.
“The screen was blank. But, I did not suspect anything at the time. I paid and drove off.”
Dallas said when he returned to work a few days later and attempted to make internet payments to several of his suppliers he realised money was missing from his account.
“About R35 000 was gone. I was baffled,” he said. “I had not received any SMSes informing me of any purchases or withdrawals.”
Dallas said he immediately opened a case of theft at the Kloof police station and contacted his bank.
The bank conducted an investigation and found that cash had been withdrawn from an ATM in Port Shepstone.
“They retrieved CCTV footage and found that my card had been cloned and a gang was using it on the South Coast.”
He said the gang had withdrawn up to R5 000 a day from his account.
“They withdrew money twice a day - morning and afternoon. They even went on a clothing shopping spree, swiped my card at a spaza shop in a nearby township and had lunches at a Chicken Licken outlet in Port Shepstone.”
Dallas said investigators told him that once a card was cloned, fraudsters could deactivate the SMS service and increase daily withdrawal limits.
“I called the petrol station manager several times to alert him to the scam but up until today he has not returned any of my calls.”
Dallas had to wait more than a month before his money was refunded by the bank.
“It was a month of hell. I could not pay my suppliers and it affected my business. But, I was eventually paid every cent including the bank charges.”
He said no suspects had been arrested.
Anton Roberts, who runs several bush lodges in northern KZN, said his credit card was cloned at a supermarket in Hluhluwe where he had bought groceries.
“I went for lunch at a local restaurant when I received a call from my bank to confirm a payment for $1 500 at a shop in Saudi Arabia,” Roberts said.
“I laughed and told the guy I was in St Lucia sipping on a beer. He told me that a purchase for that amount had been made in Saudi Arabia. I was stunned.”
Roberts said after a lengthy investigation it emerged that his card had been cloned.
“I waited for just over two months before my money was refunded.”
Private investigator Brad Nathanson said he had received more than 20 complaints of card cloning in the past month.
On his Facebook page more than 15 people reported incidents of card cloning at garages, shopping centres and restaurants in Durban and surrounding areas.
Cash withdrawals of between R2 000 and R50 000 were reported.
KZN police spokesman, Colonel Vincent Mdunge, said through crime intelligence it had emerged that counterfeit card fraudster gangs were operating in uMlazi, KwaMashu, Kwandengezi and Mariannhill.
He said gangs were using sophisticated technology, including the internet, to hack into bank accounts.
“These criminals send unsuspecting people e-mails extracting personal information bit by bit. They then use that information to access bank accounts.”
He appealed to individuals not to respond to such e-mails and to be vigilant when using ATMs and making card payments.
“Cards are cloned in a matter of seconds,” Mdunge said.
“People need to be alert at all times.”
Daily News