Guiding consumers since 2009

Security upgrade to combat banking fraud

By Staff Writer
Nicolette Dirk, finance writer, justmoney.co.za
 
From 1 January next year businesses in South Africa, that utilise card payments, will be required to draw up a current diagram to indicate how cardholder data flows throughout their system. This new regulation, stipulated by the PCI Data Security Standard (PCI DSS), was announced last month.
 
According to the South African Banking Risk Information Centre (Sabric) this change specifically addresses many typical security breaches, as credit card fraud in South Africa is still high. 
 
Andrew Kirkland, regional director of Trustwave Africa said the key points that a card transaction goes through will be tracked down using this diagram. This tracking process, from user to bank, will take milliseconds.
 
At present the safety chip and pin is one of the few technological safety measures used in the combat card fraud.
But Kirkland said there are plans to implement a system where your information will be tracked by your bank using encrypted information sent to them whenever you make a transaction.
 
How bad is card fraud?
 
Sabric recently published their annual card fraud campaign where statistics show how much card fraud is costing the country. 
Credit card fraud losses have increased by 22% from R300.6m in 2012 to R366.8m in 2013. Card Not Present (CNP) fraud, which is a major loss category, increased by 16% during the same period, from R154.7m in 2012 to R178.7m in 2013.
 
In 2012, 45% of credit card fraud losses occurred outside the borders of South Africa and this figure has increased to 60.1% for the period under review. Credit card fraud losses on South Africa issued credit cards used inside South Africa decreased by 11.4% in 2013. Counterfeit card fraud remains high.
 
“Criminals are progressively using counterfeit South African issued credit cards in neighbouring countries such as Namibia, Botswana and Mozambique and these transactions are mostly related to fraudulent cash withdrawals at ATMs,” said Sabric CEO, Kalyani Pillay.
 
Protect yourself against fraud
 
Always cover your screen when typing in your pin at any point of sale.

 
Never respond to emails appearing to be from your bank that request your personal details. Remember that no bank will ever ask you to confirm or update your account details via email.

 
Never follow a link on a mail to access your bank’s webpage. Always access the webpage by physically typing the name of the web address that you were given when you signed up for Internet Banking in your browser and confirm that you are on a secure site by looking for the little ‘lock’ icon on your browser before logging on.

 
Never provide your online ID, password or PIN to anyone and never write them down or share them- not even with a bank official.

 
Do not save your Internet Banking password on your desktop.

 
Do not make your passwords too personal- rather create passwords that have letters and numbers that cannot be attributed to you.

 
Do not leave your computer unattended after you have entered your Internet Banking password.

 
Always log off or sign off at the end of a session.

 
Avoid doing Internet Banking in public areas such as Internet Cafes, or any computer that can be accessed by people you do not know.

 
Change your PIN and passwords frequently.

 
Place sensible transaction limits on your accounts.

 
Ensure that you have the latest anti-virus software applications loaded on your computer, and make sure that you download all security patches for your operating system in a timely fashion.

 
For more safety tips go to Sabric's website or call Sabric on +27 11 847 3000.

Recent Articles

Featured The newbies quick guide to tax season

Starting in September, the South African Revenue Service (SARS) kicks off tax season. But not everyone has experience in doing this. Every year, new employees and contractors enter the job market. So, what do these tax newbies need to know?

What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Deals

50% discount on kids’ clothes at Keedo

Price: Available on request
When: Daily
Where: Nationwide

KFC Crunch Sliders for R29.90

Price: R29.90
When: Daily
Where: Nationwide

Bakwena Spa Women’s Day Special

Price: From R699
When: 8-10 August 2020
Where: Western Cape and Gauteng


Latest Guide

Guide to debt rehabilitation solutions