Press release : FNB drives down card fraud

 

 

 

 

 

FNB drives down card fraud

 

Spokesperson: Henk Vermeulen, FNB Credit Card Fraud Specialist

 

Johannesburg, 13 March 2012 – Bank cards are a convenient and safe way to make daily payments and are accepted by millions of merchants around the world.

 

Today, FNB launched its 7th annual Card Security Week in partnership with VISA to improve consumer education and to prevent fraud.

 

FNB Card fraud has slightly increased over the last 12 months which is in line with the current industry trend. This increase is directly attributed to "Card Not Present fraud", while the reports of lost and stolen card fraud have substantially decreased.

 

In response to the increase of "card not present fraud" FNB and Visa encourage customers to be vigilant and to make use of the various security measures made available to them by their bank.

 

Card not present fraud, such as unauthorised purchases on the internet or via a telesales company currently make up the largest part of card losses. This form of fraud also includes phishing, through which fraudsters obtain your card information, and then process fraudulent transactions.

 

Henk Vermeulen, Fraud Specialist at FNB Credit Card says; "In the last few months card not present fraud has decreased as a result of the implementation of additional security measures, which often take place completely behind-the-scenes. However, the most important safeguard against fraud remains an alert and vigilant cardholder."

 

The increase in card not present fraud can be seen as a criminal reaction to the roll-out of Chip and PIN. This increase has been an international trend and was then followed by a decline in card fraud, directly attributed to the implementation of Chip and PIN supported by Verified by Visa. We expect South Africa to follow this same trend, as Chip and PIN cards supported by Verified by Visa make other forms of card fraud more difficult.

 

"In an effort to combat this migration of fraud, FNB launched FNB Online Secure (a customised version of Verified by Visa, a unique service offered by Visa) towards the end of 2011. We have already seen card not present fraud dropping and have over 100 000 FNB customers actively using this new service," added Vermeulen.

 

Once activated, a Cheque or Credit Card is protected and cannot be used for online purchases without the customer's One Time PIN or Password.

 

In an effort to make FNB Online Secure as user friendly as possible FNB has incorporated this functionality into their Online Banking platform, which means that FNB will remain the constant interface between the customer and the merchant.

 

Registration for FNB Online Secure is exceptionally easy as it is already loaded onto your banking profile and you simply need to follow 4 easy steps to ensure that it is activated.

 

FNB Credit Card further reports that their fraud losses have been reduced to less than 0.075% of their total Credit Card turnover. However Vermeulen comments that, "every rand lost is viewed as a rand too much and we will continue to enlist the use of new technology to help in the fight against card fraud."

 

While Visa's Bryce Thorrold, Head of Risk for Visa Africa, says that Visa is seeing the same trend, "Fraud rates within the Visa system are at the lowest they have ever been, at just over three cents for every $100 transacted in our Asia Pacific, Central Europe, Middle East and Africa region."

 

FNB and other Card issuers have aggressively rolled out Chip and PIN cards and have increased their levels of analytical, technical and investigative abilities to prevent fraud. FNB Credit Card has to date distributed some 650 000 Chip and PIN cards.

 

Ironically, as card issuers claim victories against card fraud through the use of high technology, the bank warns that they are seeing criminals reverting to the lowest-tech version of card fraud, where fraudsters simply observe customers entering their PIN and then steal the card by mugging the victim.

 

"Often the simplest security precautions are the best. Protect your PIN when making a payment and treat your card with the same level of security you would give to a large number of high-value bank notes," notes Vermeulen.

 

"We keep our fraud numbers as low as possible, but the real issue is that any fraud is highly traumatic to a customer, not to mention the inconvenience factor. For this reason we are making every effort to prevent fraud by utilising technologies such as FNB Online Secure - Verified by Visa and Chip cards.

 

FNB is constantly working behind the scenes to protect our customers, we utilise software to highlight unusual and potentially fraudulent transactions, and often identify these transactions before the customers are even aware of them. At the same time, the card is cancelled and re-issued at no cost to the customer to stop any future fraudulent activities.

 

FNB refunds customers who genuinely fall victim to card fraud, however the crime is not victimless. Anyone who has found unauthorised transactions on their account will agree that the experience is highly stressful.

 

In a further effort to help protect customers, FNB is actively promoting its Cashback service which gives customers added convenience and security when using their Debit and Cheque card.  Cashback at a supermarket till gives an extra level of security.

 

With Card fraud, there are predominantly three methods of card skimming, copping and cloning. Fraudsters use a handheld skimming device when the card is taken out of the customer's sight at a Point of Sale to process a transaction. Another method, also with a handheld skimming device, occurs when fraudsters distract customers at ATMs to obtain their card details and then shoulder-surf the PIN. The fraudster then fabricates another card and draws money from the cardholder's account. The third method of skimming involves fraudsters placing a device, disguised as part of the ATM, over the card slot.

 

Lastly another prevalent form of Card Not Present Fraud which cannot be ignored is Phishing, where fraudsters obtain customers personal card information via fake websites and emails. This is where we believe FNB Online Secure will prove to be invaluable.

 

So while FNB makes every effort to protect their customers, we advise them to apply the following tips to further protect themselves against card fraud:

 

·         To prevent 'shoulder surfing' (where a fraudster tries to look at you entering your PIN), always cover your hand when entering your PIN number at the ATM or at a Point of Sale. Stand close to the ATM and use your body as a shield to make sure nobody sees you keying in your PIN.

·         Do not let anyone distract you while using the ATM machine as criminals can use this tactic to 'swap' cards and to 'shoulder surf' your PIN, thereby obtaining access to your PIN.

·         Never give your PIN number to anyone and don't write it down – memorise your PIN.

·         Register for FNB's free inContact service or your bank's transaction notification service. This will empower you to always be aware of the activity on your account.

·         Always make sure that you receive the correct card back from the merchant or ATM.

·         Never force your card into the ATM card slot.

·         If the ATM retains your card, cancel the transaction and your card immediately.

·         Be on the lookout for evidence of tampering on the ATM – such as a thin plastic sleeve attached to the card slot.

·         Always keep record of your card and account number, ID number and the toll-free number to call should your card be lost or stolen.

·         Never allow a bystander to dial the toll-free number on your behalf – they could be tricking you into thinking your card has been stopped.

·         Try to avoid using an ATM late at night and preferably use ATMs located inside supermarkets or forecourts when possible.

·         Do not use your birth year as a PIN number, as criminals may have access to this information after stealing your bag or wallet.

 

 

If you suspect fraud on your account cancel your card immediately and report it to the Card Cancellations Department on FNB's toll free number 0800 110 132 or call the number on the back of your card.

 

ENDS

 

First National Bank is a division of FirstRand Bank Limited.

An authorised financial services provider.

For more information please contact:

Steve Higgins, FNB Corporate Communications

Tel. 0873112854, Email shiggins@fnb.co.za