Online shopping is the safest and best way to reduce fraudulent transactions, says Visa.
Visa`s risk management VP for Africa, Neil Hawkey, said at a fraud management briefing in Johannesburg this week that customer education is essential in combating electronic card fraud.
Hawkey said Internet fraud levels are still minimal. "There`s a low volume of customer disputes on Internet transactions; it is in fact better to shop online."
He said that at the moment, the biggest fraud threats in SA are lost, stolen and counterfeit cards. "Around 35% of the fraud affecting Visa card users globally is due to lost or stolen cards.
"Most banks in the Central Europe, Middle East and Africa region are developing and applying technology to prevent fraud from occurring."
He said Visa is pursing a migration programme to chip cards, which are more secure, contain spending limits and can be protected by PIN numbers. "The potential of chip cards to control fraud losses has led to the widespread upgrading of chip technology, with hundreds of banks launching chip cards carrying the Visa Smart Debit/Credit application.
"It is essential for banks to invest in the latest technology. Data security for banks is a key issue and they should use the chip system in ATMs and point-of-sale devices to shorten the window of opportunity for fraudsters."
Hawkey warned that there is an increase in 'phishing` - using e-mail to trick customers into divulging personal and sensitive account data.
"We need to re-introduce customer education - consumers should diligently read their statements, and report unfamiliar unauthorised activity immediately. If they suspect fraudulent activity of any type, the banks or merchants they are dealing with should be notified immediately."
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