Mystery R99 debit hits SA bank accounts

Recently hundreds of thousands of South Africans – this correspondent included – were hit by mysterious R99 debit orders.

The debit orders were deducted in late October, with the reference “Nconnups”. Moneyweb’s attempts to identify the recipient have proven fruitless.

On inquiring with their respective banks, victims of the debit orders were informed they were processed by Umvuzo Payment Solutions – a third-party debit order processor, which means it debits accounts on behalf of clients. These clients are supposed to be legitimate businesses like insurers and gyms.

Every third-party debit-order processor must have a sponsor bank, which grants access to the payments system. It’s the bank’s responsibility to ensure its client is above board and processes legitimate debit orders.

The Payments Association of South Africa says Umvuzo’s sponsor bank is Standard Bank SA.

Our attempts to contact Umvuzo telephonically have been unsuccessful.

A source at a big bank (not Standard Bank), speaking on condition of anonymity, says the Nconnups debit orders were considered so suspicious the bank reversed them all (150 000), whether they were disputed or not.

For a rough estimate of all the Nconnups R99 debit orders across the “big five” banks, one could multiply 150 000 by five to get 750 000, totalling R74 million. Even if the majority of debit orders are reversed, the potential gains for the mystery recipient are still substantial.

Standard Bank didn’t answer Moneyweb’s questions, but sent the following response:

“Standard Bank ... has a zero tolerance approach to fraud of any nature. Customers who notice an unauthorised debit order on their accounts are encouraged to contact their bank immediately to reverse the transaction.

“This can be done at a branch or through the call centre on 0860-123-000.”

It said customers would not be charged, providing the transaction is reversed within 40 days.

“Customers ... should contact the company directly to stop any future debit orders [and] are encouraged to lay a complaint with the South African Police Service.

“In turn, Standard Bank does report any suspicious transactions under strict regulatory guidelines to the relevant authorities.”

Moneyweb

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