According to FNB Credit Card CEO, Jan Kleynhans, "there are currently over 6 million FNB credit and debit cards in circulation in South Africa. Of these, some 10 000 credit cards are reported lost or stolen at FNB alone every month - with a 50% increase in fraud on those cards (lost and stolen) in the last six months, which could be a result of the dramatic increase in 'smash and grab' robberies."
Card theft and subsequent fraud are often linked to other more serious crimes. "Criminals who are able to access funds through the theft and misuse of cards often use the proceeds to finance other activities, such as trading in stolen goods, drug dealing and other more serious crimes," he points out.
While most banks ensure that the losses to the individual are limited through lost-card protection plans, Kleynhans nevertheless appeals to all cardholders to do their bit to help prevent criminals from prospering from their actions. "We all have a role to play in reducing crime, and if each and every individual does their little bit, this is sure to go a long way towards curbing crime in our country."
Kleynhans says, "A recent incident which was investigated by the bank revealed that a card skimming operation in a restaurant was directly linked to drug crimes. In this case, the manager was involved in skimming cards and was receiving illegal narcotics as payment - the syndicate behind the credit card fraud was also involved in drug dealing."
Neil Hawkey, Visa International vice president of risk management in Africa notes that the threats faced by card users are intensifying. High-tech theft like phishing and skimming are still present but the major concern is the dramatic increase in theft using lost and stolen cards.
When a client's purse or wallet is stolen, victims are traumatised and are more likely to forget to cancel their bank cards. "There is a lot to deal with when you have been a victim of a crime - but remember that cancelling your bank cards as soon as possible remains an important task which will limit the gains the criminal will make from his actions," he says.
"In addition, FNB and Visa support retailers by providing fraud awareness material on a regular basis. FNB has a fraud department dedicated to merchants which monitors all incoming transactions with the objective of identifying fraud.
"Any suspicious transactions or trends are immediately investigated and appropriate actions taken. Fraud hotspots are identified and FNB and Visa use this information to further empower store owners against imminent threats."
Line Wiid, CEO Mainstream Transactional Banking at FNB, comments that in the debit card arena customers face different threats - overuse of cash instead of cards remains our number one security concern and challenge. "Cash heists are of grave concern in our society. In this regard, increased usage of debit cards can reduce this risk by simply reducing the amount of cash being transported."
"Our aim is to reduce the unnecessary use of cash as it poses a serious security risk to our customers," she says.
FNB has initiated several activities to promote the usage of debit cards, thereby reducing the need for carrying cash or storing it 'under the mattress': The FNB UIF electronic payment system instituted a year ago has ended all UIF cheque payments. Similarly, social grants paid directly into recipients bank accounts alleviate the need for pensioners to stand in queues at cash pay out points, where they become vulnerable to criminals."
Wiid concludes that with initiatives like these, many people are being encouraged to join the formal banked public of South Africa. "Today, we are opening over 120 000 mass market bank accounts every month. We believe that the safety and convenience offered by these accounts is making a marked difference in the lives of our customers. In so doing, we are helping develop our society, making it more sophisticated and much safer."
