SA fraud a billion-rand industry
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