SA fraud a bil­lion-rand in­dus­try

Finweek English Edition - - MONEY - BY JUSTINE OLIVIER

The lo­cal bank­ing in­dus­try as a whole recorded R191m of on­line f raud, and R123m worth of coun­ter­feit card fraud in 2014, ac­cord­ing to statis­tics from the Absa Card Di­vi­sion. While the in­tro­duc­tion of chip cards has helped t o c l a mp d o w n o n coun­ter­feit card fraud, on­line fraud is grow­ing as fraud­sters seek to by­pass the chip card, it said.

What’s more, the South African Bank­ing Risk In­for­ma­tion Cen­tre (SABRIC) found that credit card fraud in­creased by 24% from R366m in 2013 to R453.9m in 2014. This is a mas­sive j ump con­sid­er­ing a l l t he se­cu­rit y mea­sures that are in place to pro­tect the con­sumer. Iden­tity theft costs the lo­cal econ­omy around R1bn each year, ac­cord­ing to credit bureau Com­pus­can.

“It’s con­cern­ing to see that there is an in­crease in iden­tity fraud,” says Frank Lenisa, direc­tor at Com­pus­can. “What wor­ries us even more is that con­sumers are of­ten un­aware that they have fallen vic­tim to such a crime, and this could have a se­vere neg­a­tive knock-on ef­fect in their abil­ity to ob­tain credit in the fu­ture.”

Un­for­tu­nately, as tech­nol­ogy and

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