Bank fraud loss runs to R570m

© Steve Woods – 123RF.com

This was revealed in the SA Banking Risk Information Centre (Sabric) credit and debit card fraud statistics report released last week.

It comes as three foreigners, believed to be part of a hi-tech international card-cloning syndicate, appeared briefly in the Port Elizabeth Magistrate's Court to continue their bail application on Monday, 1 December.

Croatian Toni Bacar, 42, Serbian Zarko Cugurovic, 34, and Adrian Wardle, 41, who holds dual UK and South African citizenship, were arrested at a hotel in Humewood last month following an undercover operation by the elite Commercial Crimes Branch of the Hawks.

The men, all of whom appeared in court last week as well, were scheduled to continue their bail application, but it was postponed for an interpreter to be summoned.

All three are accused of fraud and conspiracy to commit fraud after allegedly being caught with card-cloning devices.

The Sabric report states that about 49% of all counterfeit credit card fraud transactions affecting South Africans occurred outside the country this year, fuelling the theory that international syndicates are behind the increase. The remaining fraudulent credit card transactions occurred within the country.

Between January and September this year, the banking industry lost a staggering R453.9m in credit card fraud alone - an increase from last year when R336-million was stolen.

In the same period, the banking industry also saw R123.5m lost in debit card fraud, an increase from last year when R117.7-million in losses was reported.

According to the police, Bacar and Cugurovic entered South Africa illegally in October and did not have the necessary visas. They deny entering the country illegally.

Their arrest, described by officials as a breakthrough into an international syndicate, came after the Hawks received a tip-off from a bank which spotted the three at a number of ATMs in the city.

The cloning devices are placed on the ATM's digital keypad and card slot. A pinhole-size camera is built into the interface, which is placed on the ATM.

The information is then copied from the bank card's magnetic strip while the hidden camera records the user's pin code. Detectives claim to have evidence showing that the three men were travelling the country cloning bank cards to siphon money from their victims' accounts.

The equipment confiscated during their arrest has been sent to the police cyber crime unit in East London to assist with establishing how many victims, and potential victims, had their bank cards cloned without their knowing.

The Sabric report also states that between January and September, 49 ATM card devices were recovered by authorities.

Yesterday, Sabric chief executive Kalyani Pillay said bail should not be granted to alleged bank fraudsters.

"[Perpetrators] of serious crimes, including commercial crimes, should not be granted bail and should be taken through the court system as speedily as possible to ensure effective justice."

Police spokesman Captain Sandra Janse van Rensburg said the Commercial Crime unit had a dedicated team of detectives who investigated banking-related fraud.

She called for extra vigilance over the festive season as card skimming fraudsters were more active at this time of year.

"Anyone who suspects criminal activity related to bank cards must contact the police emergency number 10111 immediately."

All three men will remain in custody until Thursday, when their bail application is expected to resume.

Source: Herald