Durban - The economy lost more than R480 million to card fraud between January and September, according to statistics released on Wednesday by the South African Banking Risk Information Centre (Sabric).
While debit card fraud decreased by 42 percent, compared to last year, Sabric said it was concerned that credit card fraud increased by 22 percent.
Debit card gross fraud losses amounted to more than R117m this year, compared to R204m last year, while credit card fraud losses went up from R300.6m to more than R366m.
Susan Potgieter, general manager of commercial crimes at Sabric, said the hot spots for credit and debit card fraud in KwaZulu-Natal were Pietermaritzburg, Empangeni and Westville. In these places, cards were either skimmed or stolen.
Potgieter said fraudsters used the stolen cards to make purchases outside South Africa, with statistics showing that purchases made outside the country soared by 61 percent, compared to last year.
She said trends showed that the fraudsters used the skimmed cards to buy liquor, groceries, clothing, fuel and to make cash withdrawals.
Most of the transactions occurred in neighbouring countries, such as Namibia, Botswana and Mozambique and these transactions were related to fraudulent cash withdrawals at ATMs.
“It is very important to protect your card as you would protect cash,” Potgieter said.
“A golden rule is to always shield your typing hand with your other hand when punching in the PIN code and if you think your card is swallowed, don’t leave the ATM until you have actually phoned your bank and cancelled the card.”
Credit card fraud losses in South Africa indicated that the number of credit cards used fraudulently decreased by 11.4 percent this year, but Sabric warned that counterfeit card use remained high.
Kalyani Pillay, chief executive of Sabric, said the decrease in debit card fraud could be attributed to changes in the business processes and systems in banks as well as the continuing collaborative efforts between the industry and law enforcement.
“When it comes to international trends, South Africa mirrors the UK in terms of card fraud with increases in CNP (card not present) cases, counterfeit and lost and/or stolen card fraud,” said Pillay.
“The prevalence of card-skimming incidents in South Africa is still very high and a significant portion of the fraud losses can still be linked to counterfeit card fraud.
“In the UK, criminals are now reverting back to more basic frauds such as stealing cards and PINs through ‘shoulder surfing’ and card swopping at ATMs, similar to the modus operandi seen in South Africa.”
TIPS:
Card skimming:
* Ensure you get your own card back after every purchase
* Never let the card out of your sight when making payments
ATM fraud
* If your card is swallowed, don’t leave the ATM before you have cancelled your card by calling your bank’s call centre, using your own mobile phone
* Shield the hand that is typing your PIN, so no one can see the PIN.
Daily News