First National Bank (FNB) says its Card Security Week, which finishes on Sunday, has boosted the fight against card fraud, which it estimates costs banks between R40 million to R60 million annually.
Janine Hills, FNB head of external communications, says following in the footsteps of eBucks` online security week, Card Security Week aims to educate customers on the importance of protecting access to one`s credit and debit cards.
"While many people are aware of how credit and debit card fraud takes place, they don`t put into place simple measures to protect themselves. SA is a very trusting society and we have seen the need to educate people about the importance of not giving their PIN number out to family or friends, or leaving confidential information in an accessible place."
Hills says there has been an overwhelming response to the campaign which was run on radio, in newspapers and online.
FNB Card CEO Jan Kleynhans says it is important to continually make the public aware about card fraud to prevent the problem from becoming as bad as it is in Britain.
"In the UK, card fraud costs banks up to lb400 million annually. While SA`s problem is not as out of hand, it is still a loss the banks are incurring."
Kleynhans says the solution in the mid- to long-term lies in smart cards, which replaces the card`s magnetic strip with an integrated chip. He says smart card technology is been driven by EMV (a body set up by Europay, MasterCard and Visa).
"EMV is driving standards and interoperability between the associations. This has led to banks like Barclays converting a third of their credit cards into smart cards. But it`s still going to take about five years to implement the technology locally as banks have to upgrade their infrastructure and replace existing cards," he says.
Smart cards will eliminate skimming, a crime whereby fraudsters swipe a user`s credit card through a machine, capturing the information from the magnetic strip. The information is then used to make another credit card, which is often used to purchase goods overseas.
Kleynhans says an average of 0.01% of FNB cardholders are affected by card skimming monthly and each case is investigated by its specialised fraud investigation team, which picks up fraud cases if a customer`s card is used in SA and then overseas shortly after that.
In comparing card fraud to online fraud, Kleynhans says despite the stigma attached to the online medium, the greater danger to the consumer lies in credit card fraud.
"While some consumers may feel uneasy about using the Internet for purchases, as long as they are on the right Web site and it has the little lock at the bottom indicating it is secure, then it isn`t a problem. People need to understand that more fraud is happening through the theft of credit cards, which are resulting in between R20 000 and R30 000 of fraud per stolen credit card," he says.
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