This is according to the South African Banking Risk Information Centre (SABRIC), who recently released the latest banking industry’s card crime statistics.
According to the report, Card Not Present (CNP) fraud, which is a major loss category, increased by 16 per cent during the same period from R154.7-m in 2012 to R178.7-m in 2013.
The statistics have indicated that most credit card fraud losses occurred outside the borders of South Africa for the period under review.
In 2012, 45 per cent of credit card fraud losses occurred outside the borders of South Africa. This figure has increased to 60.1 per cent.
Credit card fraud losses on South Africa issued credit cards used inside South Africa decreased by 11.4 per cent 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,” says SABRIC CEO, Kalyani Pillay.
“When it comes to international trends, South Africa mirrors the UK in terms of card fraud with increases in CNP, Counterfeit and Lost and/or Stolen card fraud.
“The prevalence of card skimming incidents in South Africa is still very high and a significant portion of the fraud losses can still be linked to counterfeit card fraud.
“In the UK, criminals are now reverting back to more basic frauds such as stealing cards and PINs through shoulder surfing and card swopping at ATMs, similar to the modus operandi seen in South Africa.”
SABRIC’s report, however, reveals that debit card fraud losses have decreased by 42 per cent for the period January 1 to the end of September.
This figure is significantly lower when compared to the previous year (2012), which saw the industry loosing R204-m to debit card fraud.
2013 saw the debit card gross fraud losses amount to R117.7-m.
“The decrease can be attributed to changes in the business processes and systems in the banks as well the ongoing collaborative efforts between the industry and law enforcement. However, the banking industry still calls on customers to be vigilant when transacting,” says Pillay.
Pillay adds that in regard to credit card fraud, the banking industry and SABRIC will continue working closely with law enforcement and other industry stakeholders towards decreasing card fraud.
