CAPE TOWN - The South African Banking Risk Information Centre (SABRIC) on Thursday released its Card Fraud Statistics for 2017. The report shows the clever tricks which card fraud criminals use and easily get away way.
According to SABRIC's 2017 report, credit card fraud increased by 1% from R430 million in 2016 to R436.7 million in 2017. Meanwhile, debit card fraud decreased.
SABRIC CEO Kalyani Pillay says that the debit card fraud decreased because less cards were lost or stolen during 2017. “Criminals are always adjusting their tactics to take advantage of innovations in the banking landscape. However, our collaborative model ensures that we, together with our banks and partners, are responsive and agile, enabling these crimes to be addressed efficiently and effectively.”
According to SABRIC, these 6 types of card fraud are common in SA:
1. Lost And/Or Stolen Card Fraud
According to SABRIC, lost or stolen card fraud took place mainly at toll plazas, service stations, liquor stores and family clothing stores. This type of fraud occurs when a person's card is either stolen. This can take place easily as criminals distract their target.
This type of card fraud increased by 44.5% from R17.8m in 2016 to R25.7 in 2017.
2. Not Received Issued Card Fraud (NRI)
With this type of card fraud, the card issuer typically intercepts the card before the customer receives it. Although this type of card fraud is common, it decreased by 76.4%, from R3.2m in 2016 to R761 763 in 2017.
3. False Application Card Fraud
This type of fraud occurs when an individual engages in a transaction on an account by using a false credit application. Notably, False Application Card Fraud increased from R4.4m to R5.5m (24.4%).
4. Counterfeit Card Fraud
Counterfeit cards are made illegally and these cards use information stolen from the magnetic strip of a genuinely issued card. In South Africa, counterfeit card fraud decreased from R108.9m in 2016 to R83.6m in 2017.
5. Account Takeover Card Fraud
Individuals take over accounts by posing as the genuine account holder. This type of crime decreased 17.3% from R3.1.0m in 2016 to R2.5m in 2017.
6. Card Not Present Card Fraud (CNP)
Card Not Present Card Fraud takes place when an individual does not have your card in their possession but they have your data. Your data can be accessed through various means such as phishing, discarded receipts or prior CNP purchases. Notably, CNP card fraud increased by 7.4% from R296.4m in 2016 to R318.4m in 2017.
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- BUSINESS REPORT ONLINE