Treat your cards like cash
Every year thousands of South Africans fall victim to debit and credit card fraud. Pieter Du Toit, CEO of FNB Smart Product House said 80% of debit card fraud stems from card skimming activities, predominantly at ATMs. He was presenting at a media confere
The country’s banks – in partnership with card issuers and law enforcement agencies – are engaged in ongoing “battles” to reduce card fraud. And they’re finally making some inroads. The latest statistics from the South African Banking Risk Information Centre (SABRIC) show a 40% decline in this type of fraudulent activity over the past 12 months. “The biggest contributor to this improvement has been the decrease in counterfeit, lost and stolen cards,” said Henk Vermeulen, FNB Card Fraud Specialist. The battle now shifts to the area of cheque and debit card fraud, which increased some 148% in the same period. FNB illustrated the problem with a couple of “videos” showing just how quickly unsuspecting consumers fall victim to card fraud.
It doesn’t look like a crime scene, does it?
The first footage was taken from a CCTV camera in your typical garage convenience store. A young lady walked up to the ATM, keyed in her pin, completed her transaction and walked toward the exit. As she walked away a conman called here back to indicate there was a problem with her transaction. The trusting consumer walked back to the ATM, and while she tapped away at the keypad (giving away her PIN) the conman (or “shoulder surfer” in card fraud parlance) palmed her card and handed it to his accomplice.
The accomplice – and we had a hard time believing this – skimmed the card on the spot using a handheld skimming device. This device clones the card’s magnetic strip which can then be used to transact from using the PIN “stolen” by the “shoulder surfer”. The accomplice then hands the card back to the conman, who returns it to the victim. The victim walks out of the store none the wiser while the conman and his two accomplices (one had hovered in the store entrance as a lookout) draw all the available cash from her account.
A second video, taken at an ordinary bank ATM, demonstrates how brazen these fraudsters have become. Two criminals walk into the ATM enclosure and install a camera directly above the ATM key pad… Believe it or not one of the men hops on the shoulders of the other to get this done. They’re now in a position to record the keystrokes entered by any ATM user. An unsuspecting user walks into the booth, transacts on his card, and gives away his pin. The criminals probably bump into him outside the door and “pickpocket” the card – and then proceed to empty cash from the account before the victim realises what’s happened...
Don’t become a victim
“We can’t win the fight against fraud without our customers’ help,” said Du Toit. He provided a number of points customers should always remember:
1. Treat your card as you would cash – never let it out of your sight. The ability of criminals to “shoulder surf” and steal your PIN and card simultaneously means losing your card is the same as losing your wallet containing an amount of cash equal to your daily withdrawal limit!
2. Don’t give your secret PIN to anyone. There’s a reason they call your PIN number “secret”. Because only you should know it. If you leave this PIN lying around, or share with friends or family then your card is compromised and you should immediately remedy the situation by changing the PIN.
3. Don’t accept help from anyone at an ATM. We’re far too trusting of strangers. Pay attention when you use an ATM and focus on your surroundings and any suspicious people in your immediate vicinity. Don’t accept any help if offered – and be extremely cautious if someone calls you back to the machine. Keep your card in sight at all times!
4. Don’t respond to emails that require you to submit your account number, card number, expiry date – or any account-related personal information for that matter. The banks have been harping on this for quite some time, yet people still fall victim to “phishing” attacks. Treasure your personal information – because if you disclose it you could become a victim of card fraud.
5. Don’t let your friends or family use your card. See point 2.
6. Know your daily withdrawal limits on all your accounts. In the event your card is compromised the criminal will probably try and draw out money immediately. It makes sense to know what your daily withdrawal limit is – and if it’s excessive to contact the bank to lower it.
7. If your card is compromised, cancel it. It’s much safer to cancel a lost card immediately than to delay doing so in the hope you find it again… We’ve probably all cancelled a credit card at some stage, only to find the lost wallet stuck in the sofa, but it’s better to err on the side of caution.
There you have it: Seven simple steps to avoid becoming a victim of card fraud. In conclusion, Bryce Thorrold, Visa’s Head of Risk – Africa said: “Debit and credit card fraud has become a global phenomenon with fraudsters engineering new tactics to defraud customers on a continuous basis – you need to remain vigilant to prevent your card from falling into the wrong hands.”
Editor’s thoughts: I was amazed at the technology employed by card fraudsters. From custom made card readers which fit over existing ATM slots, to pinhole cameras, to “fake” keypads – these guys will do anything to steal your PIN number. We’d love you to share your experiences with card fraud. You can send your story to [email protected], or add a brief comment below.
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