A growing trend of card-skimming, aimed at ATM users in SA, is emerging, with Absa releasing a warning about the problem this morning.
"More ATM users throughout the country are falling victim to these criminals," says the bank.
Venete Klein, Absa executive director, warns that syndicates are using sophisticated handheld card-readers, skimming devices or devices placed over ATM card slots to capture data encoded on the card`s magnetic strip.
"Then, by simply peering over the victim`s shoulder - called `shoulder surfing` in the industry - they are able to obtain the PIN number keyed in," she says. With that information, the syndicates create a duplicate card and empty the victim`s account, Klein explains.
"Because the victim still has his or her card in their possession, they are none the wiser."
Arrest and conviction
Herman Singh, director of technology engineering at Standard Bank, confirms Klein`s comments, saying: "We have seen a rising trend in card-skimming in the last six months - and we have identified certain patterns and skimming hotspots."
Standard Bank is taking corrective action to protect its customers, he says, including increasing physical security, displaying warning posters and closely monitoring customers` accounts at the identified "hotspots".
Singh says that one arrest and conviction for card-skimming has recently been secured, although he does not have further details at hand.
Other tactics
Another tactic, notes Klein, involves syndicates choosing a site with two ATMs. They will "jam" one of the machines so a card cannot be inserted, and at the other ATM a syndicate member (posing as a bank client) will offer help to the unsuspecting banker.
"Victims are persuaded to hand the card to the 'kind helper` who offers to see if it will work in the other ATM, a ruse that allows the thief to scan the targeted card with a skimming device hidden in his hand. Once read, the card is inserted into the ATM and the victim instructed to enter the PIN - in full view of the thief," she warns.
Again, the cardholder is unaware any information has been stolen.
She encourages customers to cover the keypad when punching in the PIN number, so it is impossible for anyone else, or a hidden camera, to see the PIN entered.
"If there is any sort of distraction, or if the ATM operates in an unusual way, cardholders should immediately cancel the transaction and go to another ATM where they can change their PIN," advises Klein.
While Absa states that customers of all major banks have been targeted, efforts by ITWeb to obtain comments from First National Bank and Nedbank were unsuccessful.
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