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SABRIC campaign to fight online banking fraud

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 25 Jul 2016
Global trends which show that consumers lose an average of $358 annually to banking scams, are no different to SA, says SABRIC's Kalyani Pillay.
Global trends which show that consumers lose an average of $358 annually to banking scams, are no different to SA, says SABRIC's Kalyani Pillay.

Due to ongoing reports from bank customers falling victim to online banking scams, the South African Banking Risk Information Centre (SABRIC), on behalf of its member banks, has introduced the "Schemes and Scams Campaign" which aims to raise awareness about online banking crimes.

Security software company Norton recently released a report on online banking crimes, which shows that an average of 21 hours and $358 was lost per consumer globally, over the past year due to online banking scams.

"This global trend is no different to what we are experiencing in SA, and consumers need to take the power into their own hands by ensuring they are informed on how to protect themselves, especially when doing business online," says Kalyani Pillay, CEO of SABRIC.

More business transactions, she adds, such as paying bills, shopping and trading have moved online and consumers have unfortunately also become more susceptible to online crimes.

SABRIC says with the increase of cyber crime worldwide, the issue of cyber security has moved from the server room to the board room in many local businesses, and the banking sector is no different.

"Online banking fraud increased as a result of the high level of phishing and malware attacks targeting banking customers. It is with this in mind that the industry is currently embarking on a national campaign to encourage bank customers to take great care of their cyber security," says the company.

The three most popular online scams in SA are: the change of bank account details scam, the deposit scam and the refund scam, according to the financial crime organisation.

The change of bank account details scam

An innocent recipient receives an e-mail informing them that a particular supplier of theirs has changed their bank account details. The correspondence will include the details of the new account. The recipient will be asked to make future payments into the new account. These details are fraudulent with the consequence that monies are paid to the fraudster and not the supplier.

The deposit scam

A criminal orders goods or services from a business and makes a payment into the victim's account, mostly by means of a fraudulent cheque. Proof of payment is then sent to the business and goods are delivered to the criminal. When the bank processes the cheque, it is uncovered that the cheque is fraudulent and as a result no funds were transferred to the victim's account.

The refund scam

This scam is characterised by a fraudster requesting a quotation for a specific service or goods. "Payment" is then allegedly made and proof of payment is provided for an amount that far exceeds the quotation. The supplier's office would then be contacted to alert them to the mistaken overpayment and an urgent refund would be requested. The service provider will go through their records and notice that indeed an extra amount has been paid into their bank account and they will make the urgent refund of the "overpayment".

SABRIC has urged consumers to ensure that no 'refund' is made without first verifying with the bank that the deposit made into their account is indeed valid. They also advise consumers to protect their electronic devices such as mobile phones, tablets and PCs as a crucial part of ensuring that the scourge of cyber crime is minimised.

"Banks are constantly enhancing their platforms and products to ensure that their customers are not easily duped by criminals to mitigate against the risks of cyber crime. However, it is important that the consumer is also empowered in avoiding compromising their cyber security," says the company.

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