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.