2013 Card Fraud

Card FraudSOUTH AFRICA

2013

summary 3

Breakdown per Fraud Type 11

Qualification of information .......................................................................................4

national overview of credit card fraud (2006 to 2013) ..............................................6where does the fraudulent expenditure occur? .........................................................7 How does south africa compare internationally? ......................................................8 Credit card fraud losses in south africa ....................................................................9 Geographical distribution ........................................................................................10

Card not present credit card fraud (Cnp) ...............................................................12 what is Card not present fraud? ............................................................................13 Counterfeit credit card fraud ...................................................................................14 what is Counterfeit card fraud? ..............................................................................14 Lost and/or stolen credit card fraud .......................................................................15 what is Lost and/or stolen card fraud? ..................................................................15 False application credit card fraud ..........................................................................16 what is False application card fraud? .....................................................................16 account Takeover credit card fraud ........................................................................17 what is account Takeover card fraud? ...................................................................17 not received Issued credit card fraud (nrI) ...........................................................18 what is not received Issued card fraud? ...............................................................18

1 | CARD FRAUD 2013

Table of contents

naTIonaL overvIew oF CredIT Card Fraud (2006 – 2013)

5

IndusTry measures To prevenT Card Fraud 27

FuTure THreaTs 28

Card skImmInG 22

deBIT Card Fraud 19

what is card skimming? .........................................................................................23 Card skimming with handheld devices ....................................................................23 what does a handheld skimming device look like? .................................................24Card skimming with aTm mounted devices ............................................................25 what does an aTm mounted skimming device look like? .......................................25

debit card fraud losses in south africa ..................................................................20Geographical distribution ........................................................................................21

2 | CARD FRAUD 2013

Table of contents

ImporTanT TIps To avoId BeComInG a vICTIm oF Card Fraud

26

3 | CARD FRAUD 2013

Summary• Thebankingindustry’sgross fraud losses due to south african (sa) issued credit

card fraud increased by 22%, from r300.6m in 2012 to r366.8m in 2013.

• Counterfeitcredit card fraud losses increased by 27% in 2013 and contributed to 39% of the overall credit card gross fraud loss.

• 61% of all Counterfeit credit card losses occurred outside of South Africa.

• AlthoughLost and/or Stolen credit card fraud losses increased by 102.4% from r15.6m in 2012 to r31.7m in 2013, the fraud losses account for only 8.6% of the total gross fraud losses on credit cards.

• CNP card fraud losses increased by 16% from r154.7m in 2012 to r178.7m in 2013 and contributed 48.7% of the total credit card gross fraud losses in 2013.

• Gauteng, the Western Cape and KwaZulu Natal account for 86.1% of the credit card fraud losses in South Africa.

• Debit card gross fraud losses amounted to R117.7m in 2013 compared to the r204.0m in 2012 (42% decrease).

• Themajority of the fraudulent debit card transactions for 2013 occurred in Gauteng (42.8%) followed by KwaZulu Natal (16.7%) and Eastern Cape (8.5%).

4 | CARD FRAUD 2013

This report utilises credit and debit card fraud information

as provided by Barclays africa Group, FnB, standard

Bank of sa, nedbank, Investec, virgin, amex, diners Club,

Capitec Bank, mercantile Bank, Bidvest, ubank, Bank

of athens, albaraka Bank, postbank and african Bank.

Cheque card fraud is included in the credit card fraud

figures.

reporting covers the period 01 January 2013 to

30 september 2013. For the comparative analysis the

above mentioned period will be compared to similar

periods since 2006, with a focus on 2012 to 2013.

Information set used: all credit and debit card fraud

losses as reported to saBrIC by 25 october 2013.

all calculations are based on the date of the fraudulent

transaction.

all fraud losses mentioned in this booklet refer to gross

fraud losses and do not necessarily relate to losses suffered

by the banking industry. Figures pertaining to losses due

to fraud have been rounded off to the nearest r1 million,

unless otherwise stated. due to rounding off, the sum of

the separate items may differ from the totals shown.

Qualification of information

(2006 to 2013)

National overview of credit card fraud

5 | CARD FRAUD 2013

6 | CARD FRAUD 2013

NatioNal overview of credit card fraud (2006 to 2013)

Thebankingindustry’sfinancialfraudlossesduetofraudperpetratedwithSAissued

credit cards increased by 22%, from r300.6m in 2012 to r366.8m in 2013.

Card not present (Cnp) fraud losses increased by 16% during the same period, from

r154.7m in 2012 to r178.7m in 2013.

Counterfeit card fraud losses increased from r113.9 in 2012 to r144.5m in 2013 (27%).

Thefraudfiguresinthegraphbelowdepicttheindustry’stotalfraudlossesonSAissued

credit cards, irrespective of the geographical location of the fraudulent transaction.

Fraud Type 2006 2007 2008 2009 2010 2011 2012 2013

Lost and/or Stolen R66.2m R117.5m R117.5m R65.7m R25.8m R18.3m R15.6m R31.7m

NRI (Not Received Issued) R4.2m R5.1m R10.4m R8.8m R1.7m R1.3m <R1m <R1m

False Application Fraud R29.8m R18.2m R11.1m R5.4m R1.8m R4m R13.3m R6.2m

Counterfeit R53.5m R94.7m R157.1m R145.7m R92.7m R207.7m R113.9m R144.5m

Account Takeover <R1m <R1m R1.6m <R1m <R1m <R1m R1m R2.2m

CNP (Card Not Present) R22.3m R40.7m R65.8m R63.1m R64.2m R133.4m R154.7m R178.7m

| Card fraud losses on SA issued cards (all countries) (Jan to Sept 2006 to 2013)

| SA issued credit card fraud per fraud type, all countries

All figures in R millions

Nat

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178,3 278,5

368,0 291,7

186,9 367,5

300,7 366,9

2006 2007 2008 2009 2010 2011 2012 2013

MILLIONS

R366,8R300,6

R367,4R186,9

R291,7R367,9

R278,4R178,3

7 | CARD FRAUD 2013

Where Does the FrauDulent expenDiture occur?

| Card fraud losses on SA issued cards (Jan to Sept 2006 to 2013)

during 2013, 60.1% of the credit card fraud losses occurred outside the borders

of south africa compared to 45% in 2012. Credit card fraud losses on sa

issued credit cards used inside south africa decreased by 11.4% in 2013.

Counterfeit card fraud losses outside south africa increased by 102.6% and

Cnp card fraud losses increased by 39.2%. Cnp fraud is still the biggest

contributor of fraudulent expenditure on sa issued credit cards in other countries

(55% for 2013). Increased fraudulent spend with Lost and/or stolen cards

(146.4%) and cards issued but not received (nrI) (196.5%), were also reported.

Criminals are progressively utilising Counterfeit sa issued credit cards in

neighbouring countries such as namibia, Botswana and mozambique and these

transactions are mostly related to fraudulent cash withdrawals at aTms. during

2013 the use of Counterfeit cards in non-african countries was noticeable,

especially in non-emv compliant countries such as the usa and Brazil.

Five countries with the highest recorded financial losses due to CNP and Counterfeit fraud on SA issued credit cards during 2013.

CNP Counterfeit

United States United States

United Kingdom Italy

France Brazil

Germany Spain

Ireland United Kingdom

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MILLIONS

Transactions not in South Africa Transactions in South Africa

48,2

65,1

95,5

78,3

72,9

123,6

135,8

220,8

R 130,16

R 213,40

R 272,44

R 213,45

R 114,05

R 243,93

R 164,83

R 145,95

2006 2007 2008 2009 2010 2011 2012 2013 R145,9

R220,7R164,8

R135,8R243,9

123,5R123,5R114,0

R72,8R213,4

R78,2R272,4

R95,5R213,4

R48,1R130,1

R65,0

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8 | CARD FRAUD 2013

| Card fraud losses, in pounds, on UK issued cards (Jan to June 2007 to 2013)

How Does soutH AfricA compAre internAtionAlly?

according to Financial Fraud action uk, fraud losses on uk cards

increased by 17% from January to June 2013, compared to the

same period in 2012. Cnp fraud is the highest loss category

responsible for 65.7% of the total losses. Lost and/or stolen card

fraud (13.05%) is the second highest loss category and increased

by 1%. Counterfeit fraud is third with 10.7% and increased by

15% compared to the same period in 2012.

south africa mirrors the uk trend with increases in Cnp, Counterfeit

and Lost and/or stolen card fraud. The prevalence of card skimming

incidents in south africa is still high and, therefore, a significant

portion of the fraud losses can be linked to Counterfeit card fraud.

However, as seen in the uk, criminals are reverting back to more

basic frauds such as stealing cards and pIns through shoulder

surfing and card swopping at aTms resulting in an increase in

Lost and/or stolen card fraud in south africa.

Source: Financial Fraud Action UK, Press release 4 October 2013 (http://www.financialfraudaction.org.uk/news-article.asp?genre=media&Article=2780)

MILLIONS

263,6 304,2

232,8 186,8

169,8 185,0

216,1

2007 2008 2009 2010 2011 2012 2013 £216,1

£185,0

£169,8

£186,8

£232,8

£304,2

£263,6

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9 | CARD FRAUD 2013

Credit card fraud losses on sa issued cards used in south africa

decreased by 11.45% from r164.8m in 2012 to r145.9 in 2013.

Counterfeit credit card fraud losses decreased by 21% (from r69.8m

in 2012 to r55.1m in 2013). Cnp fraud committed within south africa

decreased by 15% from r67.1m in 2012 to r56.7m in 2013.

Lost and/or stolen credit card fraud losses increased by 94.6%

in 2013 and accounts for 17.7% of the total credit card fraud

losses. Changes in business processes linked to Chip & pIn cards,

necessitated criminals to revert back to older modus operandi such

as shoulder surfing and card jamming or swopping. This has led to

the visible increase in Lost and/or stolen card fraud, similar to the card

fraud trends noted in the uk. Lost and/or stolen card fraud reverted

to levels last seen in 2010.

Credit Card Fraud Loss in south aFriCa

| Card fraud split by fraud type (Jan to Sept 2006 to 2013)

MILLIONS

Not received issued

Account takeover

False applications

Lost/stolen

Counterfeit

Card not present

R0

R20

R40

R60

R80

R100

R120

R140

R160

2006 2007 2008 2009 2010 2011 2012 2013

Mil

lio

ns

Card fraud split by card type (year-on-year, Jan to Sept 2006 to 2013)

Not received issued Account takeover False applications Lost/Stolen Counterfeit Card not present

R160

R140

R120

R100

R80

R60

R40

R20

R02006 2007 2008 2009 2010 2011 2012 2013

10 | CARD FRAUD 2013

Gauteng, western Cape and kwaZulu natal account for 86.1% of all

credit card fraud losses in south africa as well as the highest number

of skimming devices retrieved. The remaining provinces account for

13.8% of the fraud losses. although more than 50% of reported losses

relate to reported incidents in Gauteng, a decrease of 14% was seen

in the total fraud losses for this province when compared to 2012.

an increase in fraud losses for Limpopo, mpumalanga and north west is

visible in 2013.

Gauteng accounts for 52.9% of the credit card fraud losses, followed

by the western Cape with 21.8% and kwaZulu natal with 11.3%.

The provinces with the highest increase in credit card fraud losses are

north west with 55.5% and the northern Cape with 54.2%. The province

with the biggest decrease for 2013 is the western Cape with 32.9%.

GeoGraphical Distribution

2006 2007 2008 2009 2010 2011 2012 2013

Eastern Cape R1.9m R4.8m R4.9m R2.1m R1.3m R1.9m R3.6m R4.4m

Free State R1.6m R3.3m R4.3m R2.3m R1.1m R1.1m R1.3m R1.7m

Gauteng R67.8m R91.9m R117.5m R85.9m R49.4m R73.6m R73.9m R63.5m

KwaZulu Natal R16.3m R34.3m R41.4m R27.9m R16.7m R23.7m R10.9m R13.5m

Limpopo R1.5m R2.7m R3.5m R2.1m R2.2m R2.4m R2.7m R3.3m

Mpumalanga R2.7m R6.1m R7.2m R4.9m R1.9m R1.4m R2.3m R3.4m

North West R1.4m R4.3m R5.2m R2.6m R1.4m R1.8m R2.1m R3.3m

Northern Cape <R1m <R1m <R1m <R1m <R1m <R1m <R1m <R1m

Western Cape R11.3m R26.4m R29m R27m R12.8m R29.3m R39.1m R26.2m

| Provincial Geographical Distribution

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Breakdown per fraud type


(South African issued credit cards, used within and outside South Africa)


Cnp fraud losses increased by 16% from r154.7m in 2012 to r178.7m in

2013 and contributed 48.7% of the total credit card gross fraud losses in 2013.

Currently the vast majority of sa issued credit cards are Chip & pIn enabled.

The increase in Cnp fraud seen over the last few years is a clear indication that

south african credit card fraud trends are following similar trends as in other

emv compliant countries such as the uk.

Card Not PreseNt Credit Card Fraud (CNP)

| Card not present card fraud (Jan to Sept 2006 to 2013)

Bre

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per f

raud

type

MILLIONS

22,4 40,8

65,9 63,1 64,2

133,4 154,8

178,8

2006 2007 2008 2009 2010 2011 2012 2013 R178,7

R154,7R133,4

R64,2R63,1

R65,8R40,7

R22,3


Cnp fraud is a fraudulent transaction

where neither the card nor the

cardholder is present whilst conducting

the transactions. Cnp transactions

can be conducted under the following

circumstances:

• ordersforgoodsplacedtelephonically;

• purchasesconductedviatheinternet,

by mail order or fax.

retailers are unable to physically check

the card or the identity of the cardholder

during such a transaction. The card user

becomes anonymous and is able to

disguise his/her true identity.

Fraudulent Cnp transactions are generally

concluded with fraudulently obtained

card data and personal information. Card

details are compromised without the

cardholder’sknowledgeandsourcedby

various means such as discarded receipts,

previous Cnp purchases and phishing.

whilst the three or four digit Card security

Code on the back of cards (referred to

as the Cvv2 or CvC2) can certainly assist

with the prevention of fraud in cases

where only card track data was illegally

obtained, it does not prevent fraud where

the card itself was stolen or intercepted,

or where the card holder willingly supplied

the information to a criminal during a

specific transaction.

The banking industry continues to

enhance its detection and prevention

capabilities. neural networking systems

that monitor client transactions in real time

are utilised to flag suspicious or irregular

spending. merchants offering internet

transactions are advised to use software

such as “3d secure” and other transaction

authentication software to protect

themselves and their customers.

If you or your bank has not already done

so, you can register for 3d secure to help

protect you against unauthorised use of

your card when shopping online at 3d

secure merchants.

What is 3D Secure?

• ItisalsocalledVerifiedbyVisaor

masterCard secureCode.

• Itisanauthenticationservicethatallows

only the cardholder to use the card.

• Ithelpsonlinemerchantsandbanks

to know when it is the cardholder

shopping online.

• Itallowsthecardholdertoenteran

additional password or pIn to verify the

legitimacy of the purchase.

• Withadditionalfocusonthesafetyof

e-commerce transactions, the bank

may require the cardholder to register

before the next online purchase.

3d secure is easy and free to register,

simple to use and will give you peace of

mind to shop online.

when shopping online, only place orders

with the card on a secure website and

do not send e-mails that quote the card

number and expiry date.

Clients are urged to only use online

merchants that conform to this standard.

It is also important for clients to review

their monthly bank statements in order

to identify unauthorised transactions and

notify their banking institutions immediately.

What is Card Not PreseNt (CNP) Card Fraud?

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per f

raud

type


Counterfeit card fraud is fraud perpetrated with a card that has been

illegally manufactured using information stolen from the magnetic strip of

a genuinely issued card. In some instances Lost and/or stolen cards and/

or old cards are re-encoded with information stolen from a genuine card for

purposes of committing counterfeit card fraud. The information needed for

a Counterfeit card is usually stolen through card skimming.

What is Counterfeit Card fraud?

| Counterfeit card fraud (Jan to Sept 2006 to 2013)

Counterfeit card fraud increased by 27% in 2013 and contributes 39.4%

of the overall credit card gross fraud losses. 61% of all Counterfeit credit

card losses occurred outside south africa and increased by 102.6%

(from r44.0m in 2012 to r89.3m in 2013). Counterfeit credit card losses

in south africa decreased from r69.8m to r55.1m (21%) during 2013.

The south african police service (saps) in collaboration with the south

african banking industry embarked on joint projects to arrest and prosecute

perpetrators of Counterfeit card fraud and in possession of skimming

devices. skimming (be it with handheld or aTm mounted devices) of cards

is currently the preferred modus operandi used by criminals to obtain

card holder information. Clients are urged not to let their cards leave their

sight when making transactions. It is also important that banking clients

familiarisethemselveswiththeirbank’sATMsinordertoidentifyany

foreign or suspicious objects that are attached to the aTm.

Counterfeit Credit Card fraud

Bre

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per f

raud

type

MILLIONS

53,6 94,7

157,1 145,7

92,7 207,8

113,9 144,5

2006 2007 2008 2009 2010 2011 2012 2013 R144,5

R113,9

R92,7R145,7

R157,1R94,7

R53,5

R207,7


although Lost and/or stolen credit card fraud increased by 102.4% from

r15.6m in 2012 to r31.7m in 2013, the fraud losses account for 8.6%

of the total gross fraud losses on credit cards. The majority (81.6%) of

the fraud losses occurred inside south africa.

Changes in business processes to accommodate Chip & pIn cards, has

resulted in criminals reverting back to previously used modus operandi such

as shoulder surfing and card swopping. This has resulted in an increase in

Lost and/or stolen card fraud, similar to the card fraud trends seen in the

uk. Lost and/or stolen card fraud returned to levels last seen in 2010.

It is crucial for bank clients not to be distracted when transacting at

aTms and under no circumstances must assistance be accepted from

anybody whilst using an aTm.

Lost card fraud is a fraudulent transaction that occurred on a valid issued

card after a cardholder lost his/her card and is no longer in possession of

the card.

stolen card fraud is a fraudulent transaction that is performed on a valid

issued card that was stolen from a legitimate owner.

Lost and/or stoLen Credit Card Fraud

What is Lost and/or stoLen Card Fraud?

| Lost and/or stolen card fraud (Jan to Sept 2006 to 2013)

Bre

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per f

raud

type

MILLIONS

66,3 117,6 117,6

65,8 25,9

18,4 15,7

31,7

2006 2007 2008 2009 2010 2011 2012 2013 R31,7

R15,6R18,3

R25,8R65,7

R66,2

R117,5R117,5


Credit card fraud losses associated with False applications accounted for

1.7% of the overall credit card fraud losses. during 2013, the fraud losses

decreased with 52.8%, from r13.3m to r6.2m. after the increase of

226% seen in the 2011/2012 period, numerous strategies for fraud

detection and prevention were implemented and the impact is now visible.

False application card fraud occurs when a fraudulent transaction is carried out

on an account where the card was acquired by falsifying a credit application.

False applications credit card Fraud

What is False application card Fraud?

| False application card fraud (Jan to Sept 2006 to 2013)

Bre

akdo

wn

per f

raud

type

29,8 18,2

11,1 5,5

1,8 4,1

13,4 6,3

2006 2007 2008 2009 2010 2011 2012 2013

MILLIONS

R6,2R13,3

R4,0R1,8

R5,4R11,1

R18,2R29,8


Account tAkeover credit cArd FrAud

What is account takeover card Fraud?

Losses related to account Takeover card fraud increased by 100.5%

(from r1.1m in 2012 to r2.2m in 2013). Credit card fraud losses associated

with account Takeover fraud accounted for 0.5% of the overall credit card

losses. although the percentage increase is high, the associated loss is still

relatively low.

Continuous consumer education and awareness amongst bank clients

of the need to protect personal information (e.g. Id books, bank account

details, payslips, and rates and taxes) may have contributed to the decrease

mentioned. The banking industry is also constantly improving their internal

systems to ensure early detection of this type of fraud.

account Takeover card fraud takes place when an existing account is taken

over by someone posing as the genuine account holder. The impostor then

uses the account for their own benefit whilst pretending to be the genuine

account holder. The common denominator for both account Takeover

fraudandFalseApplicationfraudisthefraudsters’accesstothepersonal

information of their victims. In many instances the criminal will obtain personal

or client specific information and pretend to be the client in order to apply for a

replacement card which is then, once received, used fraudulently.

| Account takeover card fraud (Jan to Sept 2006 to 2013)

Bre

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per f

raud

type

0,3 0,4

1,6 0,6

0,3 0,8

1,1 2,2

2006 2007 2008 2009 2010 2011 2012 2013

THOUSANDS

R310R447

R1618R611

R255R781

R1077R2241


not received Issued card fraud losses increased by 44.6%, from r500 000

in 2012 to r730 000 in 2013. Credit card fraud losses associated with not

received Issued cards accounted for 0.2% of the overall credit card losses.

Improved bank processes in respect of card collections and pIn activation

contributed to this decrease. Customers are urged to respond quickly to calls

to collect replacement cards. It is also very important that bank customers alert

the bank if replacement cards were not received within a reasonable time.

not received Issued card fraud relates to the interception of a genuinely issued

card before it reached the customer. Impostors then use the intercepted cards

fraudulently.

Not Received issued cRedit caRd FRaud (NRi)

What is Not Received issued caRd FRaud?

| Not received issued card fraud (Jan to Sept 2006 to 2013)

Bre

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per f

raud

type

4,3 5,1

10,5 8,8

1,8 1,4

0,5 0,7

2006 2007 2008 2009 2010 2011 2012 2013

MILLIONS

R0,7R0,5

R1,3R1,7

R8,8R10,4

R5,1R4,2


Debit card fraud Debit card fraud losses in South Africa


| Lost and/or Stolen debit card fraud (Jan to Sept 2011 to 2013)

Deb

it ca

rd fr

aud

The fraud losses on Counterfeit debit cards decreased (40%) from r183.9m in 2012 to

r109.8m in 2013. In the same time period Lost and/or stolen debit card fraud increased

18% which is a similar to the trend seen in credit card fraud (from r6.7m to r7.9m). This is

a noteworthy increase considering the overall decrease in debit card fraud.

| Counterfeit debit card fraud (Jan to Sept 2011 to 2013)

| Debit card fraud losses on SA issued cards (all countries) (Jan to Sept 2011 to 2013)

debit card fraud gross losses amounted to r117.7m in 2013 compared to r204.0m in 2012

(42% decrease), 93.2% of all transactions were due to counterfeit debit card fraud. a large

percentage (81.5%) of the debit card fraud transactions are cash withdrawals at aTms.

Criminals need both the magnetic strip information and the pIn number of a debit card to

transact successfully. The majority of Counterfeit debit card fraud can thus be directly linked

to card skimming.

debit Card Fraud Losses in south aFriCa

219,9

204,0

117,8

2011

2012

2013

213,3

184,0

109,8

2011

2012

2013

MILLIONS

MILLIONS

MILLIONS

7,1

6,7

7,9

2011

2012

2013

R117,7

R204,0

R219,9

R109,8

R183,9

R213,3

R7,9

R6,7

R7,0


Province 2011 2012 2013

Gauteng 42% 43.7% 42.8%

KwaZulu Natal 18.8% 18.6% 16.7%

Eastern Cape 17.9% 9.4% 8.5%

Western Cape 7.5% 9.3% 8.4%

Mpumalanga 4.6% 6.2% 6.5%

Free State 3.1% 3.3% 4.2%

North West 3% 5.2% 5.7%

Limpopo 2.6% 3.9% 6.3%

| Percentage of debit card fraud losses per province (Jan to Sept 2011 to 2013)

The distribution of debit card fraud within Gauteng, kwaZulu natal and eastern

Cape followed a similar pattern to that of credit card fraud. In 2013 the

majority of the fraudulent transactions occurred in Gauteng (42.8%) followed

by kwaZulu natal (16.7%) and eastern Cape (8.5%).

The other provinces collectively account for 31.8% of the fraud losses on debit

cards. The biggest growth was seen in Limpopo where the percentage losses

increased from 3.9% to 6.3%.

Deb

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rd fr

aud

geographical distribution

Card skimming


Card skimming involves the illegal copying of encoded information from the magnetic

strip of a legitimate card by means of a card reader with the intention to use the data for

encoding counterfeit, lost, or stolen cards to transact fraudulently.


Handheld skimming remains a threat in the card fraud environment and

is one of the major contributors to Counterfeit card fraud. From 2005

to september 2013 a total of 1 281 handheld skimming devices were

recovered by investigators, with 129 of these being seized between

January to september 2013.

during 2013 the majority of handheld skimming devices were recovered

in Gauteng (57), mpumalanga (21) and the western Cape (12).

There was an increase in the number of devices recovered in

Limpopo (11 compared to three in 2012).

| Retrieved handheld skimming devices (2005 to 2013)

what is card skimming

card Skimming With handheld deviceS

0,0 0,0

0,0 0,0

0,0 0,0

0,0 0,0

0,0

2005 2006 2007 2008 2009 2010 2011 2012

2013 Jan-Sep

4448

90143

206190

194237

129


The images below are examples of handheld skimming devices recovered.

although there are many models available, handheld skimming devices are usually

small black objects that fit into the palm of the hand and can easily be hidden in

a pocket. The public is urged to report any individuals importing or using these

devices to steal card data, to the police.

Eastern Cape 5%

Free State 6%

Gauteng 44%

KwaZulu-Natal 6%

Limpopo 9%

Mpumalanga 16%

Northern Cape 1%

North West 4% Western Cape

9%

Provincial distribu0on of retrieved handheld skimming devices (Jan to Sep 2013)

Cards can be skimmed at

aTms or at points of sale and

therefore bank clients are urged

not to accept assistance from

anybody at aTms and not to let

their cards out of sight when

transacting.

What does a handheld skimming device look like?

| Provincial distribution of retrieved handheld skimming devices (Jan to Sep 2013)

Car

d sk

imm

ing


aTm mounted skimming devices were retrieved in five provinces. Gauteng

had the highest number retrieved (22), followed by kwaZulu natal (5), western

Cape (3), mpumalanga (2) and one device in Limpopo.

aTm clients are encouraged to be on the lookout for foreign objects attached

to aTms and are urged to always conceal their pIn number when transacting.

This device is difficult to recognise as it is manufactured to match the look and

feel of the aTm. Therefore it is advisable to inspect the aTm machine and cover

the pIn pad with your free hand when entering the pIn.

| Retrieved ATM mounted skimming devices (2007 to 2013)

Between 2007 to september 2013, 177 aTm mounted skimming devices

were recovered by the banking industry and law enforcement. during January

to september 2013, a total of 33 devices were recovered.

Card Skimming With atm mounted deviCeS

What does an atM Mounted skiMMing device look like?C

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skim

min

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2013 Jan-Sep

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2

9

36

43

53

33

DOs:• IfyouthinktheATMisfaultycancelthe

transaction immediately, report the fault to your bank and transact at another aTm.

• Becautiousofstrangersofferinghelpas they could be trying to distract you in

order to get your card or pIn.

• Ifyouaredisturbedorinterferedwithwhilst transacting at the aTm, your card could be skimmed by being removed and replaced back into the aTm without your knowledge. Cancel the transaction and immediately report the incident using yourBank’sStopCardTollfreenumberwhich is displayed on the aTm or on the back of your bank card.

• Choosefamiliarandwell-litATMswhereyou are visible and safe to transact.

• KnowwhatyourATMlookslikesothat you are able to identify any foreign objects attached to it.

• Ifyourcardisretained,donotleavetheaTm before you have cancelled your cardbycallingyourbank’scallcentreusing your own mobile phone.

• ShieldthehandthatistypingyourPINnumber so that nobody can see your pIn number.

• Neverletthecardoutofyoursightwhenmaking payments.

• Ifyouhavedebit,chequeandcreditcards,don’tchoosethesamePINforthem all so that if you lose one, the others will still be safe.

• Keepyourtransactionslipsandcheckthem against your statement to spot any suspicious transactions which must be queried with your bank immediately.

DON’Ts:• Donotaskanyonetoassistyouatthe

aTm not even the security guard or a bank official. rather go inside the bank for help.

• Neverforceyourcardintotheslotasitmight have been tampered with.

• IftherearesignsthattheATMhasbeentampered with, do not insert your card.

• NeverwriteyourPINonyourcard.

• Neverwritedownyourpinandstore it in the same location as your card.

Important tips to avoid becoming a victim of card fraud


protection of Client datasa banks subscribe to pCI dss

standards as set by masterCard, visa as

well as local legislation to protect client

information inclusive of card data. Banks

also urge clients to become pCI aware as

data security is of utmost importance.

Chip & pInwhilst the roll out of Chip & pIn credit

cards has reached critical mass, these

cards still have information encoded on

the magnetic strip. Bank clients should

remain vigilant as this information can

still be skimmed.

Improvement of internal systems and processesThe sa banking industry continuously

invests in technology to assist with the

detection, prevention and reduction of

bank card fraud.

Crime trends are followed closely and

adjustments to monitoring systems are

made to mitigate associated risks.

sms notifications for transactions on card

accounts are an effective detection tool

and banks encourage customers to

utilise this service.

sharing of information and combating of card crimesaBrIC provides the industry with a

national industry view of crime threats

and trends and facilitates a collective

approach to the combating of card fraud

in partnership with the saps and the

national prosecuting authority as well

as other stakeholders in the fight against

crime. dedicated police reaction teams in

provinces where card fraud is prevalent,

has contributed significantly to the

combating thereof with numerous arrests

and successful prosecutions.

Crime awarenesssaBrIC and the banking industry regularly

partner with the media to alert bank clients

to new modus operandi and also provide

crime prevention tips to card users.

Industry measures to prevent card fraud


SABRIC House, Hertford Office Park, 90 Bekker Road, Vorna Valley, Midrand

P O Box 3682, Halfway House, 1685

Tel: +27 11 847 3000 • Fax: +27 11 847 3001

Email: [email protected] • www.sabric.co.za

Facebook: www.facebook.com/sabricza

Twitter: www.twitter.com/sabric

• Counterfeitcardfraudfacilitatedbythetheftofcarddatathrough

card skimming, remains a threat to the banking industry.

• CNPfraudwillcontinuetoincreaseasseeninEuropeancountries

where Chip & pIn cards were introduced.

• Bulkdatacompromisesofcardholderdatathroughinfectionof

computer systems with malware will increase.

• AsseeninotherEMVcompliantcountriessuchastheUK,

Lost and/or stolen card fraud will increase.

Future threats


2013 Card Fraud

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Transcript of 2013 Card Fraud