Card Fraud

Perpetrators use a variety of Card Fraud methods and keep changing their approach to trick their victims. The most common Card Fraud types in South Africa at present include Counterfeit Card Fraud, Lost and Stolen Card Fraud, False Application Fraud and Card Not Present Fraud. Card Fraud is difficult for the banking industry because perpetrators prey on the vulnerabilities of bank customers and do not target banking systems.

Counterfeit Card Fraud

Counterfeit Card Fraud involves illegally manufactured cards that use personal information stolen from the magnetic strip of a genuinely issued card. In other cases, lost and stolen cards or old cards are encoded with the new information that was stolen from a genuine card for purposes of committing Counterfeit Card Fraud. Perpetrators usually use card skimming devices to steal the information needed for Counterfeit Card Fraud.

Card Not Present Fraud

Card Not Present (CNP) Fraud refers to a fraudulent transaction where neither the card nor the card holder is present at the point of sale. CNP transactions can be conducted when orders for goods, travel or accommodation are placed telephonically, by internet, mail order or fax.

Lost Card Fraud

Lost Card Fraud refers to fraudulent transactions conducted on a valid issued debit or credit card after the card holder has lost his or her card.

Stolen Cards Fraud

Stolen Card Fraud refers to fraudulent transactions performed on a validly issued debit or credit card that was stolen from a legitimate owner.

False Application Fraud

False application Fraud occurs when fraudulent transactions are conducted on an account where the card was acquired by falsifying a card application. Since the introduction of legislation such as FICA and the NCA, banks have become more rigorous in application verification procedures and False Application Fraud has declined by over 90% from the 2007/2008 high.

Account Take Over Fraud

Account Takeover Fraud occurs when a perpetrator poses as the legitimate account holder and takes over someone’s account and then uses the account for their own benefit. Access to personal information is used by perpetrators to pose as their victims for both Account Takeover Fraud and False Application Fraud.

Not Received Issued Card Fraud

Not Received Issued Cards Fraud relates to validly issued credit and debit cards that are intercepted before they reach the authentic customers and used for fraudulent transactions.

Tips to Avoid Becoming a Victim of Card Fraud

  • Always follow your card and never let the card out of your sight when making payments.
  • Report any suspicious behaviour by the person to whom you have handed your card when making payments immediately to your Bank.
  • Never accept help from anyone at an ATM, even people who appear to be bank staff or security.
  • Be familiar with your ATM construction, this way you will notice any foreign objects attached to it.
  • Never use an ATM that is tampered with or visibly damaged. This could be a trick to get you to use another ATM in close proximity where a device is mounted.
  • Suspicious foreign objects or people loitering around ATMs should be reported to your bank immediately.

Tips to Avoid Becoming a Victim of Card Not Present Fraud

  • Always check your bank statements for suspicious transactions.
  • Shred or burn bank statements, receipts and financial information when disposing of them.
  • Never let another person use your card and do not leave your card or your card details lying around.
  • Never divulge your PIN to anyone.
  • Make use of the card security products offered when transacting with online merchants.
  • Ensure you only place orders with your card on a reputable and secure website when shopping online.
  • Do not send e-mails that include card details such as your card number, expiry date or other details.
  • Report any irregular transactions on your bank statements to your bank immediately.

Bank Crime Info


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© The Banking Association South Africa 2019