How To Avoid Card Fraud This Season

Card Fraud In South Africa

Pillay explained that there has been a steady increase of card fraud in South Africa over the past year. Each year, the methods used by criminals become more advanced. This is making it harder to catch and trace criminals.

“Criminals will always be on the lookout for gaps and weaknesses in order to defraud victims. Fortunately, SABRIC’s collaborative model, as well as the robust risk mitigation measures deployed by its members, position the industry perfectly to tackle card fraud,” explains Pillay.

According to the report, card fraud is more prevalent in Gauteng, Western Cape and the Kwa-Zulu Natal.

Banks have increased security measures and all new bank cards are equipped with a unique chip. This ‘Chip and Pin’ technology has curbed counterfeit debit card fraud by 35%, however credit card fraud remained the same at 26.4%.

Although there has been a significant decrease in fraud since the chip, stolen cards have increased. This has been criminals’ alternatives and it has proven to be successful.

Criminals will stand behind ATM users and watch them put in their pin number. Thereafter, they will distract them and take the card. This method has accounted for 56.2% of all card frauds in 2016.

Types Of Card Fraud To Be Aware Of 

Criminals nowadays are finding new and improved methods when committing card fraud. Here are some of the fraud techniques that you should be aware of these holidays:

Card-Not-Present(CNP ) Fraud

This is currently one of the most common forms of card fraud in the world, with online shopping being so big.

According to the report,”industry statistics indicate that credit card related Card Not Present (CNP) fraud increased by 18, 9% from the previous year and accounts for 66.8% of the losses relating to SA issued credit cards. CNP debit card fraud increased by 4.6% which can be attributed to a wider acceptance of debit cards by online vendors.”

This form of fraud takes place when criminals are able to gain access to card and user details online. This could be as a result of lack of security measures and unsafe websites.

Card Swopping

This is the simple act of a criminal distracting an ATM user and then gaining access to their card and details. According to an article by the Huffington Post, “they may do this by offering help while customers are doing their transactions, or they may change the language on the screen prior — so an unsuspecting customer asks for help.”

Another technique that criminals use is known as ‘shoulder surfing’. This is when the criminal peers over the shoulder of the ATM user while they are making a transaction. They take note of the user’s details and passwords and then use this when they swop the cards.

Phishing

Phishing is also recognised as a cyber crime as criminals pose as registered institutions seeking personal details online.

Many people fall victim to these criminals too easily as they give out personal details, like bank account numbers and cell phone numbers, without question.

Another reason why people fall victim to these crimes is because they don’t constantly change their pins and passwords. Many tend to make the same password for different accounts and cards.