Tag: credit card

By Wendy Knowler for Herald Live

Credit card fraud has been rapidly outpacing all other forms of bank fraud in recent months, with many older people being sweet-talked by fraudsters posing as bank officials into revealing their one-time-password (OTP) over the phone.

The Ombudsman for Banking Services, Reana Steyn, issued a warning about the alarming trend, revealing that 58% of the bank clients who complained about falling victim to credit card fraud in the past three months were older than 61 and 11% were older than 80.

“Not long ago credit card fraud was number five in our list of complaint categories, and now it’s number two, comprising 19,45% of all complaints,” Steyn said.

“That’s up from about 12% in December. At this rate it will soon overtake internet banking fraud to occupy the top spot.”

In a typical scenario, a bank client gets a call from a fraudster claiming to be phoning from their bank. In most cases, the fraudster already has the person’s credit card number.

The fraudster has gone onto an online shopping site – two of their favourites are Takealot and Foschini, Steyn said – and, poised to buy with victim’s credit card, they convince them that in order to help the bank prevent them from falling victim to fraud, they must please read out the OTP which has been sent to them via SMS.

The victim complies, and then the shopping begins.

The fraudsters also con people into believing that the bank will give them extra bank loyalty rewards points if they answer a few questions, Steyn said.

In the process of that Q&A, they’re asked for their OTP.

In one case, a fraudster asked a woman if she would like to convert her bank rewards points into cash. With that benefit in mind, she read out her OTP.

Alarmed at getting similar calls on the same day, she phoned her bank, but had already been defrauded of R11,200.

“Credit card fraud is a growing concern as banking systems increase in speed and efficiency,” Steyn said. “At the same time, fraudsters apply more sophisticated tactics to defraud and rob customers of their hard-earned money and savings.

“All bank customers, particularly the elderly, need to be knowledgeable and vigilant about their preferred banking channels.”

What not to do:

  • Never share personal and confidential information with strangers over the phone.
  • Banks will never ask you to confirm your confidential information over the phone.
  • If you receive an OTP on your phone without having transacted yourself, it is likely that it is a fraudster who has used your personal information. Do not provide the OTP to anybody. Contact your bank immediately to alert them to the possibility that your information may have been compromised.

How to complain:

  • Lodge a formal, written complaint directly with your bank’s dispute resolution department.Ask for a complaint reference number from your bank.
  • Allow the bank 20 working days in which to respond to your complaint.
  • Obtain a written response from your bank and if you are not satisfied with the outcome, please log the complaint with the Ombudsman for Banking Services.

Apple unveils credit card plans

By Nick Statt for The Verge

Among the most tangible announcements at Apple’s services event yesterday was also its most interesting: a credit card, aptly called the Apple Card, with both a physical and digital version that gives you up to 3 percent cash back. The product is, on the surface, a way for Apple to sell its brand on another everyday object you likely already own. But beneath the veneer of a titanium credit card with the Apple logo on it, the company is clearly charting out its post-iPhone future, one in which services reign supreme, by following a formula we’ve never quite seen it attempt before.

In this case, Apple has decided that it needs a traditional product, even one with the dubious moral baggage of a credit card, to promote Apple Pay. While the digital wallet and payment platform is growing fast, it’s still used by less than half of all global iPhone owners (and even less in the US). So just as Apple sees competing with Netflix and large cable companies as part of its future by creating its own TV shows and paying top dollar for Hollywood talent, the company no longer sees upending the status quo in payments as a viable path forward for Apple Pay.

“I think the strange optic here is that credit cards are not necessarily innovation in payments, even with better rates and loyalty,” says Rivka Gewirtz Little, a global research director at analyst firm IDC who specializes in payments. “So, to see a big tech firm, which hangs its hat on innovation, go such a traditional route – that’s what I think is a bit odd here. I’d like to see Apple get more innovative in transforming the way we pay.”

For years, as the iPhone has become ubiquitous and sales have started to slow, Apple has tried to emulate the paradigm-shifting success of the App Store and iTunes before it by barreling its way into TV and film, mobile payments, and news. But time and again over the last half-decade or so, Apple has run into the hard economic and logistic reality of trying to change industries that are far less malleable than mobile software and music.

And while Apple Pay may be a bold vision of the future, it’ll likely be years before contactless digital payments become truly mainstream in the US. In the meantime, Apple wants to sell you the benign and the boring — a credit card, a cable package, a magazine subscription — in hopes it can make its software and services as intrinsic a part of everyday life as its smartphone. Changing industries from the ground up is no longer Apple’s playbook, especially as it plays catch-up to companies like Netflix and Spotify.

Apple’s strategy mirrors that of Amazon. The e-commerce giant started out selling genuinely new and best-in-class products like the Kindle and then the AI-powered Echo speaker. But Amazon has since used the consumer goodwill it garnered and the power it wields over its digital storefront to sell you everything from microwaves and wall clocks to white label clothing brands, home supplies, and AmazonBasics-branded AA batteries.

Apple is doing the same, using the iPhone as the ultimate gateway to transform every iOS and Mac user into a series of multiple recurring revenue streams from products made first and in some cases made better by other companies, be it Apple Music, Apple News, iCloud, or the new TV app. Apple is stopping short of making its own version of Prime, in which all of these services could be bundled together, but the company appears to be taking its cues from Amazon’s subscription approach to further lock iPhone owners into a broader ecosystem.

With the Apple Card, the company is going one step further and trying to capture not just what you consume, but also the financial means you use to do so. Apple isn’t reinventing the wheel — the card, as reported by CNET, doesn’t have contactless capabilities like newer cards from competing banks, so you’ll need to slide it or input the chip into a reader to use it every time. Instead, Apple is giving users a no-frills credit card that’s a cleverly disguised way to juice Apple Pay adoption and usage.

Unlike the subscription services it plans to sell, the Apple Card comes with no annual fee, no late lees, and an interest rate supposedly lower than the industry average. On top of that, it has a pretty straightforward rewards program that incentivizes consumers to use Apple Pay to buy Apple products, for the most cash back at 3 percent thanks likely to the fact that Apple no longer has to hand over as high a processing fee as it does with a third-party card. If you have to use the physical Mastercard-branded card, you’ll get 1 percent back. (Granted, when it launches, the Apple Card will be one of the only cards on the market without a sign-up bonus, the primary incentivizing mechanism banks use to get people to open new lines of credit.)

To get customers to actually sign up, Apple is leaning heavily on its privacy-first approach. Effectively, Apple wants to be the only tech company you actually trust. Onstage yesterday, CEO Tim Cook said the card will not collect data on your transactions, and Apple will not let its partner bank, Goldman Sachs, sell any data to third parties. But of course that begs the question: how does it make money, and without those usual stipulations, is Apple not simply banking on users falling into debt and pocketing the insurance money they’re forced to pay for years to come?

The goal may not be to turn a profit, at least not on the service itself. It all comes back to Apple Pay. The reason Apple made a credit card in the first place is to spur adoption of Apple Pay, and to create a digital wallet that can be used not just in the real world, but also inside an iOS ecosystem that is increasingly being peppered with new, for-pay services.

“Mobile wallets are still a small section of the market, so it’s understandable there needs to be a big push if your aim is more adoption,” says Rasha Katabi, CEO and co-founder of credit card and digital payments startup Brim Financial. “As the adoption of e-commerce increases, and we’ve seen that at an exponential rate over the past few years, the relevance of having a physical card or lack thereof will track really closely to the adoption and migration from physical shopping to fully online shopping.”

The only online shopping Apple truly cares about happens within its ecosystem: in-app subscriptions for its new services, microtransactions in mobile games like Fortnite, Venmo-style peer-to-peer payments with Apple Cash, and purchasing of Apple hardware from within the Apple Store mobile app. All of this qualifies for the 3 percent cash back bonus, Apple confirmed to The Verge. And that arrangement sheds an interesting light on the entire Apple Card approach.

Through its incentives, Apple is creating a system where you’ll shop in the real world at Apple Pay partners for an extra cash back bonus, switch your App Store credit card to an Apple one with an even better bonus, and rely only on the physical card for when you absolutely have to. And all of it is underpinned by Apple’s privacy pledge and relatively solid security track record, as well as the luxury status symbol provided by an Apple-branded piece of titanium, with its number-less design that non-coincidentally makes it easy to gloat about on social media.

Researcher reveals Eskom data leak

By Charlie Osborne for Zero Day 

In what may be a case of “if we ignore it, it will go away,” South Africa’s largest electricity company has become the subject of the public exposure of customer data after ignoring researcher pleas to resolve the problem.

Eskom is South Africa’s state-owned electricity company which generates approximately 95 percent of the region’s electricity, as well as roughly 45 percent of all of the electricity used across the African continent.

On Tuesday, cybersecurity researcher Devin Stokes sent a public tweet to Eskom which appears inlaid with frustration at non-communicativeness from the electricity provider.

Stokes said, “You don’t respond to several disclosure emails, email from journalistic entities, or Twitter DMs, but how about a public tweet? This is going on for weeks here. You need to remove this data from the public view!”

The following image contains a screenshot of what appears to be customer and service-related data, including account IDs, start and end service dates, and meter information:

Several hours later, Stokes published a further screenshot with a live timestamp, commenting, “OK. It got worse.”

It appears that this database entry contained some of the financial data of a customer, including name, card type, a partial card number, and CVV, the three-digit security code which is required for purchases in-person or online.

According to the researcher, the electricity provider has left its billing software database exposed, lacking so much as a password.

The most recent customer estimates available, published in 2016, claim that Eskom accounts for roughly 5.7 million customers across South Africa. It is not known how many customers may have been involved in the reported breach.

However, this may not be the only security failure Eskom needs to grapple with — as one of the company’s own employees may have complicated matters further in their gaming enthusiasm.

In a screenshot posted by MalwareHunterTeam, another Twitter user warned Eskom of the existence of a Trojan on one of their networked, corporate machines. The user reported that the Trojan infected the machine through a fake SIMS 4 game installer.

The Twitter user, going under the handle “@sS55752750,” added that the offending employee is a “senior infrastructure advisor.”

While there has been no news on the exposed database, Eskom did thank the researcher who disclosed the Trojan’s existence, saying, “This has been investigated and the necessary actions have been taken. Thank you for bringing it to our attention.”

“Accidental breaches of this type further drive home the point that every company should have a formal process to accept vulnerability reports from external third parties,” Jon Bottarini, Lead Technical Program Manager for HackerOne told ZDNet in response to the news. “Exposing the vulnerability details on Twitter seems to have been the last-ditch attempt on behalf of the security researcher to try and get in contact with someone who can resolve the issue.”

Eskom told ZDNet that the company is “conducting investigations to determine whether sensitive Eskom information was compromised as a result of this incident,” but will not comment further until the investigation has been concluded.

Amazon is planning to offer a credit card to U.S. small-business customers, furthering its push to supply companies with everything from reams of paper to factory parts, according to people with knowledge of the matter.

The e-commerce giant has been in talks with banks including JPMorgan Chase on a co-branded credit card for small-business owners who shop on its website, said the people, who asked not to be named discussing private negotiations. An Amazon spokesman declined to comment.

Seattle-based Amazon (AMZN, -0.68%), the world’s largest online retailer, has been looking for a way to replicate in the workplace the success that’s made it a go-to shopping destination for households. In October, the company launched a Prime membership program offering fast free delivery for businesses, which was seen as a way to grab market share from factory-equipment providers such as WW Grainger and Fastenal and office-supply stores like Staples (SPLS, +0.00%) and Office Depot (ODP, -3.53%).

Amazon is hoping the new credit card, which will feature rewards points for purchases, will also let it eventually add offerings such as business insurance through a portal designed for its small-business customers, according to one of the people familiar with the matter. Amazon could use customers’ transaction data to help tailor the rewards, this person said. The retailer has already lent $3 billion to more than 20,000 small businesses that sell via its marketplace in the U.S., U.K. and Japan, Amazon said last year.

Warring banks
The battle for small businesses’ spending has also been heating up among U.S. card issuers such as JPMorgan and American Express. Over the past few years, those lenders have debuted retooled proprietary small-business cards as well as new co-branded offerings for such customers.

A representative for JPMorgan (JPM, -1.24%) declined to comment.

AmEx (AXP, -2.33%) says it is the top card issuer for U.S. small businesses and that its portfolio is larger than its five nearest competitors combined, according to a presentation last week. The New York-based company doesn’t disclose total purchase volume for the category. In 2016, small businesses spent about $72.9 billion a year on JPMorgan’s credit cards, $46.7 billion on Capital One Financial’s and $15.6 billion on Citigroup’s, according to a June 2017 edition of the Nilson Report.

AmEx shares slipped on the news, declining 1.4% to $97.67 at the close of trading on Monday. The report also rattled stocks of AmEx credit-card rival Discover Financial Services and Amazon supply-chain competitors Grainger and Fastenal.

Amazon already offers two credit cards for consumers with JPMorgan and Synchrony Financial. Those cards come with as much as 5% cash back on purchases. The retailer is also in talks with JPMorgan and Capital One about a product similar to a checking account that could help it lower the amount it spends on card fees every year.

Source: Bloomberg / Fortune

The National Credit Regulator (NCR) will investigate Standard Bank’s new credit card fee, according to a report in the Sunday Times.

The bank has been charging a standalone monthly “card fee” of between R10 and R210 to customers who use its credit cards only, with the fee depending on the type of card the customer uses.

The card fee was implemented at the beginning of 2018 and is charged in addition to the monthly service fee of R40.

According to the NCR, the Credit Act has a closed list of charges a credit provider can levy on customers – and the card fee is not one of them.

The NCR said it would investigate Standard Bank’s card fee and take approporiate action if the fee is found to be illegal.

According to Standard Bank’s pricing guide for 2018, the card fees are as follows:

Gold, Blue, and Access cards – R10.00
Titanium standalone – R25.00
Platinum standalone – R40.00
World Citizen standalone – R210.00

The report follows SA Consumer Satisfaction Index results in 2017 showing that Standard Bank customers are the least satisfied.

Standard Bank did not respond to requests for comment sent by the Sunday Times.

Source: MyBroadband

An internationally co-ordinated fraud attack involving forged bank cards used at ATMs in Japan has stripped Standard Bank of about R300-million.

Standard Bank and authorities remained mum on the progress of investigations and the whereabouts of the syndicate, as investors appeared largely unconcerned by the bank’s loss.

Spokesman Ross Linstrom of Standard Bank, which made just more than R22-billion in headline earnings across the group in 2015, said on Monday a sophisticated and co-ordinated syndicate had created a “small number of fictitious cards” and proceeded to draw a total amount of R300-million from ATMs in Japan.

He said investigations were at a sensitive stage, but that bank customers would suffer no adverse effects if their details had been stolen and used in the Japanese fraud.

Japanese media have reported that about 100 individuals hit 1 400 ATMs in just three hours on a day when banks are closed for business, with one withdrawal transaction at each ATM up to the daily limit amount set in Japan.

According to Japanese media, no arrests have been made and the individuals who made the withdrawals may no longer be in the country.

The fraud fits an international trend involving hit-and-run withdrawal schemes in which fraudsters may be jetting into countries in different time zones to buy themselves time to collect the cash and run.

The South African Banking Risk Information Centre confirmed the Standard Bank matter was under investigation, and CEO Kalyani Pillay said the local industry would provide full support to both the bank and law enforcement, where possible.

“The industry’s card losses for 2015 were in the region of R778-million across all card types for South African-issued cards.

“This was a 4% decrease compared to 2014. Banks have robust systems in place to monitor and detect fraud, but some risks lie with bank clients themselves,” Pillay says

Southern African Fraud Prevention Services executive director Manie van Schalkwyk said his organisation stops about R3-billion in fraud every year.

“Identity fraud is declining, and the main reason is the use of biometrics,” he says.

Van Schalkwyk said banks were making use of various databases and methods to try keep up with and combat such fraud, as criminals continued to evolve their modus operandi.

By Brendan Peacock for www.bdlive.co.za

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My Office News Ⓒ 2017 - Designed by A Collective


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