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Henk Vermeulen of FNB who is their fraud specialist for credit card fraud said cards can be skimmed in three ways. The first is when the card is taken out of the consumer’s sight for transactions the card is skimmed then. The second is when con men place a device on the ATM machine to copy the card during while it is being used or the third being distracting them and getting their PIN. “When these statistics are taken into consideration, consumers have to be empowered with the knowledge to recognize fraudulent activities,” FNB said.
FNB said after March 2007, the estimated fraud was Rs8.5 million when compared with the March 2008 figure of Rs15.63 million. This large increase in fraud has caused companies come down hard on regulations.
“Fraudsters can also place micro cameras and PIN-pad overlays at ATMs to obtain the consumer’s PIN,” Vermeulen said. “Once in position, these devices can be remotely accessed from a nearby secure location to obtain the card and pin numbers. “
Vermeulen says consumers who have been a victimized by credit card fraud should contact their banks immediately to prevent losses and to take the right course of action on the issue.
Banks have said that changing the magnetic strip type cards with newer chip and PIN based cards will reduce credit card skimming.
“The newer chip and PIN cards function with a PIN, not a signature, which makes all transactions significantly more secure,” Vermeulen said. Chip based cards cannot be accessed in many countries as the new type of credit card is not is use as much as the magnetic strip type. “To avoid inconveniencing our clients, FNB’s chip-enabled cards still have fully functional magnetic stripes to enable consumers to transact across the globe,” he continued “By proactively reporting suspected fraudulent activity, consumers can help to create a greater awareness around card crime, with the result that lower levels of card skimming may be reached. And, remember, treat your credit card as you would cash or your car keys.”
