SABRIC, the South African Banking Risk Information Centre, on behalf of the banking industry has released its Card Fraud Stats for 2017 which reflect an overall decrease in card fraud. Debit card fraud decreased by 8.5% while credit card fraud increased by 1%, from R434.0m in 2016 to R436.7m in 2017.
SABRIC CEO, Kalyani Pillay says that the decrease seen in debit card fraud is due to a reduction in lost and/or stolen and counterfeit card fraud. “Criminals are always adjusting their tactics to take advantage of innovations in the banking landscape. However, our collaborative model ensures that we, together with our banks and partners, are responsive and agile, enabling these crimes to be addressed efficiently and effectively.”
Lost and/or stolen credit card fraud saw a 44.5% increase and accounted for 5.9% of overall gross fraud losses in 2017, with 76.1% of fraud occurring in South Africa. Criminals mostly stole, swopped or installed card entrapment devices at ATMs and then shoulder surfed victims to obtain their PINs.
2017 also saw a significant decrease in counterfeit card fraud, continuing the trend for 2016. Counterfeit debit card fraud saw a decrease of 32.2%, with losses of R65.3m, while counterfeit credit card fraud decreased by 23.2%, with losses of R83.6m. These decreases can be attributed to the robust mitigation strategies which were implemented by the banks.
Industry statistics indicate that credit card related Card Not Present (CNP) fraud is still the leading contributor to gross fraud losses in South Africa, and showed an increase of 7.4% from the previous year, accounting for 72.9% of the losses on SA issued credit cards. CNP debit card fraud showed a more significant increase of 60.7% due to certain banks allowing online Card Not Present transactions on debit cards.
Pillay stresses that bank clients always be vigilant about protecting their personal information. “Always protect your personal information, and do not under any circumstances share PINs, One-Time PINs or any other authentication information with anyone. Your bank will never ask you for these.”
Please click HERE to access the 2017 SABRIC Card Fraud Booklet.
SABRIC urges the public to take the following protective measures to protect themselves:
For more information go to www.sabric.co.za
To arrange for interviews with SABRIC CEO, Kalyani Pillay, contact:
Media and communications Manager
Tel: +27 11 847 3134
Cell: 082 070 5349
Notes to Editors:
SABRIC is a NPF company formed by South African banks to support the banking industry in the combating of crime. SABRIC’s clients are South African banks and major CIT companies. Its principle business is to detect, prevent and reduce organised crime in the banking industry through effective public private partnerships. SABRIC co-ordinates inter-bank activities aimed at addressing organised bank related financial and violent crime and acts as a nodal point between the banking industry and others, in respect of issues relating to crime. The creation of public awareness of various bank related crimes and educating the public on how to protect themselves is one of SABRIC’s key focus areas. For more on SABRIC visit www.sabric.co.za