According to the latest statistics released by First National Bank (FNB) and Visa, FNB credit card fraud has decreased by 39%. However, it is not all good news, as FNB points out that research suggests that customers are still in need of education when it comes to keeping their cards and information safe.
Chris Labuschagne, CEO of FNB Credit Card noted: “We are seeing positive trends in the reduction of credit card fraud and we are confident that we can protect our customers. As long as they haven’t been negligent with their card information, they will not be held liable for any loss.”
Card fraud
FNB Credit Card has noted that less than 0.02% was lost to fraud during the last financial year. The bank revealed that there has been a noticeable decline in fraud in the retail sector as all new cards that are issued now are protected by both Chip and PIN.
The issue of keeping your card’s PIN private needs addressing. The research highlighted that 42% of people share their PIN with at least one other person. In addition, four percent write their PIN down and a further six percent have it saved on their cell phone.
The rise in popularity of online shopping is a concern, as there is the possibility of fraud. To combat this, both Visa and FNB have “invested in multiple anti-fraud measures to protect customers in this space.”
Let’s go phishing
However, while there are a number of measures in place to protect consumers and their card information, there are instances where people are not as cautious with this information and fraudsters are getting the card details from the customers themselves.
Labuschagne highlighted that consumers are vulnerable to phishing scams. “Columinate research shows that only 73% of people know what phishing is. Phishing, simply put, is when fraudsters pretend to be from well-known companies, organisations, or government agencies and then contact consumers directly, trying to trick them into revealing their personal information.”
According to FNB, 80% of consumers noted that they protected themselves from phishing by not clicking on suspicious looking links. After this, 42% of consumers revealed that they never disclose their personal information online, while 35% noted that they inform their bank when they receive a suspicious email.
FNB stressed: “The best way to protect oneself from phishing is to be vigilant and aware and never enter your banking information into a URL that you did not type in yourself.”
Keeping your information safe
Fred van der Westhuizen, director for risk services for Visa in Sub-Saharan Africa, said: “Visa has invested heavily in advanced fraud-fighting technologies, and we continue to develop and deploy new and innovative programmes that protect cardholders. EMV or Chip & PIN is one of those technologies and we urge cardholders to be vigilant with their PIN number. Simply don’t share it, don’t write it down, and don’t store it in your phone as one can so easily be compromised.”
To make online shopping easier and more secure, Visa has launched Visa Checkout, which allows “customers to make purchases quickly and easily from their smartphone, tablet, laptop or PC,” revealed the company.
Van der Westhuizen highlighted that Visa Checkout allows customers to store their card and address information in a secure account. The programme does not only work with Visa, but all major credit and debit card brands, and shoppers do not have to leave the website in order to complete the transaction.
Labuschagne emphasised: “We will continue to drive customer awareness and improve anti-fraud mechanisms and we are confident that we will see a continuing decline in fraud levels.”