While there has been a 15% reduction in credit card fraud over the past year, online scams remain one of the biggest threats to card security SA, which has been labelled the second most targeted country in the world for Internet fraud and phishing attacks.
These are the findings from independent research carried out by Columinate (commissioned by First National Bank (FNB) and Visa) and e-mail management company Mimecast, respectively.
FNB and Visa recently joined forces again, to launch their tenth annual Card Security Week, which included a survey of South Africans and their understanding, awareness and behaviours around card security. The survey was completed online by more than 800 individuals, representing all races and genders, and across low, middle and high income groups from all nine provinces. The survey focused on individuals who have a bank account and regularly (at least once every two weeks) use their bank card to draw cash and pay for goods.
Head of fraud at FNB's credit card division, Athaly Khan, says the survey found, while the overall awareness of card fraud is high, 42% of South Africans still admit their PINs are not kept secret and that they share their PINs (mostly with their spouses, 85%). "These numbers are higher than in 2013 when 38% shared their PINs."
From FNB's perspective, online scams, PIN security and cloning of cards are the biggest threats to card security. According to the South African Bank Risk Information Centre, South Africans lost over R2.2 billion in scams and attacks in 2013.
Bryce Thorrold, head of risk services for Visa in Sub-Saharan Africa, says 93% of individuals surveyed pay careful attention to their SMS notifications when making transactions.
Khan adds it is the higher income earning consumers (over R350 000 per year) that show the most careless card behaviour. "Our past communication drives have shown improved consumer vigilance among middle and lower income customers.
Buying online
"With a substantial increase in online purchases, we are also raising the profile of card security online," says Khan, noting 25% of the people surveyed transact online more than once a month.
"By following a few simple steps, customers can protect themselves from cyber fraud. When customers enter their card details on a Web site, it is important that they check the site for HTTPS in the Web address and that it is registered for online security programmes like 'Verified by Visa'."
Thorrold says, as cardholders and merchants demand quicker methods of payments, new channels are opening up - like contactless payments at the point of sale.
Meanwhile, in its research into Internet fraud and phishing in SA, Mimecast found that not only is SA is the second most targeted country for this kind of activity, most people fall for phishing scams, despite being aware of what phishing is.
"In 2013, credit card losses amounted to R366.8 million due to fraud. As a result, it's become important to be careful when sharing credit card details online."
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