WITH the surge in online shopping since the Covid-19 pandemic, credit card fraud has escalated into a more pervasive threat. Chances are, either you or someone you know has been impacted by these increasingly sophisticated scams. With Black Friday and the festive season approaching, staying informed about potential risks is more critical than ever.

To help consumers navigate this growing concern, Caxton Local Media’s Durban branch consulted financial experts to provide essential insights on fraud prevention.

While banks have implemented robust safety measures to combat fraud, Ulrich Janse van Rensburg, the chief fraud strategy and analytics officer at Absa, warned that the sophistication of ‘social engineering’ – the tactic of manipulating, influencing or deceiving a victim in order to defraud said victim – is constantly evolving.

“As soon as banks mitigate for a specific social engineering modus new ones evolve,” he explained.

Janse van Rensburg highlighted that, while financial service providers are going to great lengths to combat fraud, customers also play a crucial role in safeguarding their own financial information.

Understanding fraudsters’ methods is the first step to safeguarding your finances. Here’s a closer look at the most common forms of card fraud and actionable tips to protect yourself.

Forms of card fraud:

1. Card-present fraud

This type of fraud occurs when physical cards are stolen and used, often at ATMs.

Janse van Rensburg described a common scam where fraudsters enable the ATM’s cardless transaction feature.

“This feature prevents the ATM from accepting a card, which confuses the victim when they try to insert their card in the ATM slot. The fraudster interrupts the victim’s ATM session and cancel the cardless option. It’s at this point where the victim uses the ATM and the fraudster peaking over the victim’s shoulder to see the PIN entry. Once the PIN was entered by the victim the fraudster interrupts again and this time ejects the card without the victim noticing,” he explained.

Another distraction method involves fraudsters offering to ‘sanitise’ your card or the ATM.

Janse van Rensburg noted that while these criminals are often easily identified, leading to arrests and successful convictions, the offences are classified as ‘petty crimes’ and, as a result, ‘do not always carry the level of sentencing we would hope for’.

2. Card-not-present (CNP) fraud

“Also known as online or e-commerce fraud, CNP fraud occurs when criminals use your card details – card number, expiration date and CVV – to make online purchases,” explained Janse van Rensburg. They do not need to have your card in their possession.

Dindi Kunene, a spokesperson for Standard Bank, warned that fraudsters often impersonate bank officials, tricking victims into providing their card details under the guise of reversing unauthorised transactions.

“If the bank is truly contacting you about suspicious activity, they can secure your account without requiring action from you,” Kunene clarified.

Janse van Rensburg stressed that while e-commerce scams are becoming increasingly prevalent, the capture and prosecution of ecommerce fraudsters are low as these criminals can operate anywhere in the world.

3. Card cloning and skimming

“Card cloning happens when a ‘skimming’ device is hidden at an ATM or on card machine (point-of-sale device) slots to copy the data that is stored on the card magstripe,” explained Kunene.

“Criminals opt to either load the stolen data onto a blank card or they can sell the data online,” added Janse van Rensburg.

“Fortunately, card cloning has decreased significantly since the implementation of the card chips,” noted Kunene.

Adding to that, Janse van Rensburg said, “The details stored on the EMV (Europay Mastercard and Visa) differ slightly from the magstripe details, and banks seek EMV data first before they authorise transactions. The data on the EMV chip of the plastic is encrypted, and the encryption keys are held by the card schemes.”

“Criminals may attempt to obtain your PIN by either installing a concealed camera near the ATM or discreetly observing you as you enter it during a transaction,” said Kunene.

Safety tips for shopping with your card – online or in-store:

1. When shopping online, ensure that the site is reputable. Do research on the company and how long the company/site has been around.
2. Avoid deals that seem too good to be true.
3. When making online purchases, only authorise the amount that was advertised.
4. Regularly review account statements, and activate the transaction notification service with your bank.
5. Only load your card details on reputable websites and apps when you purchase goods or services.
6. There should NEVER be a delay in receiving a two factor authentication. If delayed, contact your bank immediately
7. Never click on any suspicious links.
8. Ensure that your cards are always kept in a safe place.
9. Memorise your Pin. Never write it down or disclose it to anyone – including family members or bank officials.
10. Never share any information, such as your full card number, CVV, expiry date or OTP, with anyone.
11. Read all your messages properly before you approve a transaction or submit an OTP.
Familiarise yourself with the look of the ATM – this could help you identify any suspicious/foreign objects. Avoid using ATMs that you suspect may have been tampered with.
12. It is advised that you always use the ‘tap and pay’ method first as this is the most secure payment method. If that fails, insert the card into the point-of-sale device so that it can read the chip. Only swipe the card as a last resort.
13. Never let your card out of sight, and where possible, do not hand your card to anyone else.

With the festive season fast approaching, taking these preventive measures can make all the difference in protecting your financial security. Stay vigilant, stay informed and enjoy a worry-free holiday season.

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