Fraud­sters us­ing bank card de­tails to steal from you

Weekend Argus (Saturday Edition) - - PERSONALFINANCE - LOR­RAINE KEAR­NEY

There has been an over­all de­crease in bank card fraud this year, but the South African Bank­ing Risk In­for­ma­tion Cen­tre (Sabric) notes with con­cern the in­crease in fraud when you have lost your card or it has been stolen.

Credit card fraud dropped by 28.6 per­cent, from R353.3 mil­lion last year to R252.2 mil­lion this year, although debit card fraud in­creased by 8.3 per­cent over the same pe­riod, Sabric said as it re­leased its statis­tic for the year this week.

But it says “card-not-present fraud” in­creased by 12.6 per­cent from the previous year. It now ac­counts for 75 per­cent of the losses re­lat­ing to South African­is­sued credit cards.

Card-not-present fraud in­cludes lost-card fraud, stolen-card fraud, ac­count-takeover fraud and is­sued-card-not-re­ceived fraud.

Lost-card fraud is a fraud­u­lent trans­ac­tion that oc­curs on a validly is­sued card af­ter a card­holder loses his or her card. Stolen-card fraud re­sults from a fraud­u­lent trans­ac­tion per­formed with a validly is­sued card that was stolen from a le­git­i­mate owner.

Lost and/or stolen card fraud ac­counted for 46.2 per­cent of debit card fraud losses.

“With the roll-out of chip and PIN cards, crim­i­nals are rev­ert­ing to card jam­ming and swap­ping at ATMs, ac­com­pa­nied by shoul­der surf­ing for PIN num­bers,” Sabric chief ex­ec­u­tive Kalyani Pil­lay says.

Even if your card is lost or stolen, with­out your PIN, your card is al­most use­less to crim­i­nals if they want to do an ATM or over-the-counter trans­ac­tion.

How­ever, crim­i­nals could trans­act with lost or stolen cards in a coun­try that is not EMV-com­pli­ant (does not have chip and PIN cards), Pil­lay says.

“Card-not-present trans­ac­tions can be done with the card, as the rel­e­vant de­tails on the card will en­able on­line trans­ac­tions. For this rea­son, we urge bank cus­tomers to reg­is­ter for 3D Se­cure, which will help to pro­tect them.”

Also known as Ver­i­fied by Visa, MasterCard Se­cureCode or Amex Safekey, 3D Se­cure is an au­then­ti­ca­tion ser­vice that al­lows only the card­holder to use the card when shop­ping on­line.

Ac­count-takeover fraud is when an ac­count is taken over by some­one pos­ing as the ac­count holder.

Is­sued-card-not-re­ceived fraud re­lates to the in­ter­cep­tion of gen­uinely is­sued cards be­fore they reach the au­then­tic cus­tomers.

If your card is miss­ing, you should report this to your bank im­me­di­ately and ask it to block all trans­ac­tions on your card, Pil­lay says.

Sabric says you should do the fol­low­ing to pro­tect your­self from fraud:

◆ Sub­scribe to your bank’s SMS no­ti­fi­ca­tion ser­vice, which will in­form you of any trans­ac­tional ac­tiv­ity on your ac­count;

◆ Reg­is­ter for 3D Se­cure be­fore us­ing your bank card on­line;

◆ Never send emails that quote your card’s num­ber and ex­piry date;

◆ Don’t choose the same PIN for your debit, cheque and credit cards;

◆ Al­ways cover the hand that types in your PIN when us­ing your card at an ATM;

◆ Never ac­cept as­sis­tance from strangers when trans­act­ing at an ATM – they could be try­ing to dis­tract you in or­der to get your card or PIN;

◆ If your card is re­tained by an ATM, block your card be­fore you leave the site; and

◆ Sign your card on the sig­na­ture panel as soon as you re­ceive it.

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