Gauteng hardest hit by card skimming
Gauteng recorded the highest number of handheld card skimming devices and credit card fraud.
STATISTICS on banking fraud happening in Gauteng is a cause for concern as the highest numbers of incidents are recorded in this province.
According to a statement by South African Banking Risk Information Centre (SABRIC), the banking industry’s gross fraud losses due to credit card fraud increased by 23 per cent from R366 million in 2013 to R453.9 million in 2014.
Gauteng recorded the highest number of handheld card skimming devices seized by SAPS and credit card fraud is most prevalent in the province.
SABRIC CEO, Kalyani Pillay on November 25 revealed the majority of these handheld devices were recovered in Gauteng, with 38 card skimming devices confiscated and 55 per cent of the credit card fraud loss occurring in Gauteng.
The province accounts for 88 per cent of all credit card fraud losses in the country.
Pillay further revealed that… “From 2005 to September 2014 a total of 1 377 handheld skimming devices were recovered in Gauteng, Western Cape and KZN by either SAPS or bank investigators, with 74 of these seized between January and September 2014.”
The biggest contributor to the increase has been false application fraud, which saw a very significant increase from R6.2 million in 2013 to R78.3 million in 2014. SABRIC on behalf of the banking industry voiced concern about the increase in card fraud from January to September 2014.
“Of all fraud perpetrated on cards acquired through false applications, 88 per cent of the transactions occurred in SA. SABRIC has found that criminals misuse the online application channels provided by banks, by using false details to open multiple credit card accounts. Consequently, they then obtain legitimate cards and PINs,” noted Pillay.
SABRIC also announced in November that counterfeit credit card fraud losses in SA decreased by 12 per cent from R55.1 million in 2013 to R48.4 million in 2014. Although card not present fraud committed in the country has increased by 21 per cent from R56.7 million in 2013 to R68.9 million in 2014.
Card skimming involves the illegal copying of encoded information from the magnetic strip of a legitimate card by means of a card reader, and this could occur either at ATMs or points of sales.
“We urge bank customers to adhere to ATM safety tips, such as not accepting assistance from anybody at the ATM and not letting their cards out of their sight when transacting,” concluded Pillay.
