Tag: FNB

FNB backtracks on password decision

FNB recently announced a new online banking policy which prevented users from saving their passwords to their browsers.

However, the bank received a backlash from techsavvy users, who pointed out that using software to bypass this feature would create more vulnerability.

FNB head of digital banking Giuseppe Virgillito told MyBroadband that the bank had taken note of social media feedback.

“FNB recognises the valuable feedback from our customers regarding the measures to prevent auto-filling of banking passwords,” Virgillito said.

“We have found that a number of our customers save their banking passwords to their browsers. This places customers with stolen or unattended devices at considerable risk.

“As a consequence, we strongly discourage customers from storing their banking passwords in their browsers.

“The use of this type of software for your banking is strongly discouraged as it places the user at a high risk of introducing malicious software onto their device.

“Alternatively, it also places users at an increased risk of phishing. As a consequence, hereof, we have decided to revisit the decision to prevent auto-filling of passwords at this time,” Virgillito said.

FNB users should now be able to log in to their online banking as normal, using password managers or auto-fill passwords.

First National Bank (FNB) has announced that users will no longer be able to save their online banking passwords in their browsers.

Going forward, whenever a user wants to log into their account they will have to do so manually.

This forces users to keep their banking passwords secure.

“All stored passwords on your device can be viewed during a malware attack. Passwords can be easily accessed on your unattended/unlocked/stolen device,” FNB stated in a MyBroadband article.

FNB advises that users do the following to keep their passwords safe:

  • Do not share login details with anyone
  • Always use a different password for different websites. Avoid using the same one over and over
  • Report any fraudulent activity immediately to the FNB Fraud Centre: 087 575 9444
  • This change may interfere with various third-party password lockers such as LastPass

FNB accidentally gives clients free money

On Tuesday it emerged that FNB accidentally gave a number of its clients free money. The extra funds ranged from a few hundred rand to over R3 000.

FNB said that this was due to an error which is being rectified. Recipients of the extra funds will be required to pay it back, as unjustifiable enrichment can be reversed, an attorney told Business Insider South Africa.

The error appears to be due to delayed debit card transactions. FNB says that they have been in contact with clients who received the extra funds.

Retrieving the additional funds will not necessarily be an easy task, as the bank may find it difficult to extract the money from clients who have already spent it.

FNB has not revealed how much extra money was accidentally given away in total, nor how many people in total received money.

By Wendy Knowler for Times Live

Do courier company drivers have the necessary training and experience to verify proof of identity and address before handing over a credit card, complete with its PIN number?

If First National Bank (FNB) client Ivan Kistnasami’s experience is anything to go by, definitely not.

He recently discovered that a fraudster had applied for a Discovery card in his name, and had it delivered to an address in Howick, KwaZulu-Natal, in November.

“With his new credit card and pin – and a massive credit limit of R102,000 – the fraudster had access to my cheque and credit card accounts, and within two days he had transferred all funds that were available, up to my credit limits, creating debt to the tune of R157,000,” the Pietermaritzburg resident said.

When he approached TimesLIVE for help shortly before the festive season corporate shut-down, his credit profile was in tatters and FNB had failed to honour his monthly debit orders.

“I believe that FNB was negligent in that they have delivered this credit card with the pin through a courier driver who clearly had no experience in verifying the documentation,” Kistnasami said.

The proof of address, a Woolworths account, bears an address which doesn’t quite match the font of the name; a clear sign of fraudulent tampering.

And the ID in Kistnsami’s name bore the photo of a black man, another obvious identity mismatch.

“FNB has my picture on their system, yet the courier driver accepted an ID document with a photo of someone very different.”

The courier company employee stamped the copy of the ID and the Woolworths account, and put his signature to the statement that he’d seen the originals and confirmed the copies to be true.

Kistnasami said when he approached FNB about the couriering of credit cards to its clients, “I was told that the bank does not allow clients to collect from the branch as they are trying to reduce the number of clients transacting at branches”.

In fact, since July 2018 FNB has not stopped allowing its clients from collecting their cards at a bank branch, but strongly discouraged that by charging them R200 if they choose to do so, while offering a free courier service.

“The reduction of card deliveries to branches is in accordance with the bank’s business and digital migration strategy, which continues to benefit customers from a convenience and cost-saving perspective,” the bank told TimesLIVE.

By December, thanks to the bank’s “convenient” delivery of Kistnasami’s card and PIN to the fraudster, he was deep in debt, his medical cover had been suspended due to non-payment, his insurance policy premiums had not been paid and his car insurance was a month in arrears.

TimeLIVE asked FNB whether fraudsters had abused the bank’s card courier policy to acquire credit cards in the name of other clients and whether it intended to implement new security measures to counter this form of fraud.

Does the bank feel it is appropriate for courier staff to have to determine whether or not an alleged card holder’s proof of identity/address are authentic or not?

Responding, FNB said very little, other than Kistnasami was the victim of identity theft and had been refunded.

“Our investigation into the circumstances of the fraud is still pending and we will communicate with the customer until the matter has been amicably finalised.

“Due to the ongoing investigation, we cannot disclose any further information on the matter.”

Kistnasami told TimesLIVE that he has repeatedly been told by FNB that the investigation was still “ongoing”.

“Yes, I was reimbursed, but the accounts are on hold. When I try to settle or balance the accounts so that I can close them, the system says ‘on hold’.

“All I want is to put this nightmare behind me and move on with my life,” he said.

“I do not want the bank to come back to me a year or more later and say I owe them a large sum of money.”

Asked to comment, Discovery said that as Discovery Card was “still operating through a joint venture with FNB” it would leave FNB to comment on the matter.

When Discovery Bank launches later this year, the spokesman said, “it will have incredibly strong security controls”, which would be explained at the time.

FNB is the only bank which charges its clients a fee for wanting to collect their cards from a branch of the bank.

Its competitors do the reverse, charging clients a fee of between R150 and R175 to have their cards delivered to their chosen address by courier.

FNB launches QR-based scan-to-pay

Source: IOL

FNB is expanding its digital payments ecosystem by enabling consumers and sole proprietor businesses to perform and accept QR code payments using the FNB Banking App.

This makes FNB the first bank in South Africa to integrate QR code payments for both consumers and sole proprietor businesses on a banking app. The integration of QR code payments on the FNB Banking App which has 2.8 million active users helps customers with another simple choice in digital payments as there is no need to download any additional app.

Raj Makanjee, FNB Retail Chief Executive said, “We are rapidly expanding our digital payments ecosystem by providing customers with helpful digital payments solutions. The ability to make QR code payments offers our customers convenient and secure alternatives to carrying cash. As pioneers in innovation, we are consistently developing a wider selection of customer-centric solutions in digital payments, including solutions such as GeoPay and FNB Pay”.

Mike Vacy-Lyle, FNB Business Chief Executive said, “As the leading business bank in South Africa, we continue to make significant strides in ensuring that our solutions cater for the entire business value chain, of which the ability to process convenient and safe payments is a key component. This industry-leading payment solution helps us to grow digital payments acceptance among business customers and reduces reliance on physical cash, which remains one of the biggest challenges for such businesses from a cost, security and time management perspective”.

To make payment, individual FNB customers can simply enable the new FNB App ‘Scan to Pay’ widget on their smartphones. Alternatively, they can select the Payments option on the FNB App, login and select FNB Pay, then click on ‘Scan to Pay’.

Similarly, businesses will select Payments, login and click on ‘Speedpoint’, register and begin to utilise the service within 24 hours. Businesses have the option to display the QR Code within the FNB app, email and print the QR code, or share it via social media. There are no monthly rental or maintenance costs which makes this a cost-effective means for a business to accept digital payments. Those businesses that do not bank with FNB can open an account, register and start accepting QR code payments all within the FNB App.

This innovative capability is powered by Masterpass, Mastercard’s digital payment service, which is interoperable with most major domestic scan-to-pay services, representing a footprint of approximately 140,000 merchants and billers.

“We are excited to partner with FNB to further accelerate the adoption of digital payments in South Africa, using Masterpass’ existing QR code infrastructure,” says Mark Elliott, Division President, Mastercard, Southern Africa. “It furthers our goal of enabling consumers and businesses to transact anywhere, at any time or place, across any channel or device from a single app on their smartphones.”

Source: IOL

As the festive season has kicked off in earnest and consumers spend more, FNB on Monday warned that approximately 56 percent of middle income consumers in South Africa spend all their monthly income in five days or less after receiving it.

This is according to data from FNB’s Retail segment, which categorises middle income consumers as those who earn a gross monthly income of between R7 000 up to R60 000.

Raj Makanjee, chief executive of FNB Retail, said that for many consumers it was not only a matter of living from one salary payment to another, the reality is that their monthly salary just does not last for 30 days.

Makanjee encouraged consumers to exercise financial discipline, saying that financial discipline was not dependent on having greater income but requires deliberate steps.

“These consumers tend to struggle with money management, with the shortfall leading to sacrifices in important areas such as having back up or emergency saving that can be used to pay for unforeseen expenses. High spending and limited savings cause consumers to rely on credit to get through the month, making them more vulnerable to be caught in a debt trap,” Makanjee said.

Christoph Nieuwoudt, chief executive of FNB Consumer, said more than half of consumers miss at least one debit order over a 12-month period, indicating the pressure consumers are under.

“For almost 40 percent of such customers, debt repayments make up more than half of their take-home-pay, which we consider to be very high. The main driver of this is large numbers of microlender loans and store cards that consumers take up. The ideal scenario for a consumer is to have one provider who gives them a transactional account and the right type of credit when needed,” Nieuwoudt said.

The bank said said it had also seen that 30 percent of middle income consumers who are saving, save for emergencies and at least one other longer-term goal.

FNB offers “tap and PIN” ATM transactions

Source: The Citizen

FNB has become the first bank in South Africa to offer consumers an innovation that allows them to tap bank cards and enter a personal identification number (PIN) to perform a transaction without inserting the cards into automated teller machines (ATMs).

The bank estimates that the “Tap and PIN” function will reduce the time it takes to make a withdrawal by up to 20 seconds and protect its customers against card skimming devices. The functionality is currently available across 100 FNB ATMs and the bank said more would be upgraded during 2019.

The new product is a major step in the bank’s plans to continuously improve the convenience and safety of its banking ecosystem, said FNB Retail chief executive Raj Makanjee.

“In the last three years, consumers have processed approximately R1 billion worth of contactless payments from 5 million transactions on FNB issued credit and debit cards alone,” Makanjee said.

“The frequency of use by consumers has grown by between 100% and 300% on our credit and debit cards respectively, highlighting the confidence of our customers in adopting new and secure payment methods. Having started issuing contactless cards three years ago, we now have over 8.5 million contactless-enabled debit and credit cards in the hands of consumers.”

Makanjee said contactless payments offered substantial benefits in an era where consumers and retailers wanted to avoid long queues.

Source: MyBroadband

If your bank card gets stolen and you cancel it, this does not automatically mean that all payments from it will be blocked.

This was the case when two FNB customers contacted MyBroadband about their frustrating experiences with the bank.

The customers both had their FNB bank cards stolen in different scenarios – and both contacted FNB to have their cards cancelled.

Despite cancelling the cards, both users noted small payments still going off their bank accounts via card transactions.

The charges were toll gate fees.

In one case, the customer reportedly asked FNB why the cancelled card could still make transactions. He said he was told by FNB that he would have to blacklist the card, on top of cancelling it, to stop the transactions.

In the other case, the customer stated that all he could do was get a refund for the toll gate fees.

This customer subsequently contacted the toll gates where his card was being used to ask them to block transactions on it.

He also managed to obtain an image of the vehicle using his stolen card – it was a white Toyota minibus taxi with a Gauteng registration.

FNB responds
MyBroadband contacted FNB for feedback on the matter, and the bank confirmed that the bank cards were cancelled as described above.

“Unfortunately, due to toll gate merchants operating in an offline environment, this prevents them from obtaining authorisation from the bank for transactions of this nature. As a result, additional transactions were posted,” said FNB.

“The customer will not incur any loss resulting from fraud in this scenario.”

FNB was asked what a bank customer should do to ensure their cancelled card is not used to make these types of transactions, but the bank did not provide feedback.

Offline transactions
According to PASA (Payments Association of South Africa) documents, lost and stolen card fraud at toll gates has been highlighted as a significant concern in recent years.

“Although toll card transactions are a card present transaction, fast throughput of vehicles is important and transactions are thus processed in an offline and delayed manner – cleared in batch,” states PASA.

“Importantly, unlike any other offline card present card transactions, toll gate transactions are not verified by the cardholder in any way.”

It added that while toll gate transactions are checked against the “Hot Card” file, this “only contains a limited number of all lost and stolen card details”.

Did the banks collude with the Guptas?

Source: The Citizen 

The EFF has criticised South Africa’s major banks, calling them opportunistic and hypocritical “in their testimony given to the state capture inquiry”.

Standard Bank’s retired head of legal testified at the inquiry on Monday giving reasons that led the bank deciding to close the business accounts of the controversial Gupta family.

Former FirstRand Group – which First National Bank (FNB) is a division of – chief executive officer (CEO) Johan Burger is testifying at the commission today.

“These banks were very happy to do business with the Guptas until the unceremonious December 2015 removal of Nhlanhla Nene as finance minister when South African stocks were severely devalued,” the EFF said in a statement.

The red berets added that by the time of Nene’s axing, the Guptas and former president Jacob Zuma – who are commonly referred to as the Zuptas – were already carrying out corrupt activities “facilitated by the very same banks”.

The EFF said: “It is impossible that the banks only started to notice the suspicious transactions of the Guptas and their companies in 2016 as they now want us to believe.

“The truth is that these banks colluded in the looting of the country for as long as it was feeding into their profit maximisation motives and greed. These are the only driving forces behind the commercial banks. For them, it’s profit before people and the country.”

The party said it hopes the chair of the commission Deputy Chief Justice Raymond Zondo would not be fooled by the testimony of the banks.

“We call on the South African Reserve Bank (Sarb) and the Financial Intelligence Centre to launch a separate probe into the complicity of South African banks in the Gupta state capture and why they turned a blind eye towards an obviously suspicious transactions before 2016 and to hold them accountable for their part in state capture,” the EFF said.

The party added that if the Sarb fails to institute such a probe the party would take it upon itself to initiate a parliamentary probe into the matter.

Meanwhile, Burger testified on Tuesday that FNB had closed the accounts of the Guptas due to associated reputational and business risks.

On Monday 7 May 2018 First National Bank became the first bank in South Africa to introduce a mini-ATM that uses biometrics, as a means of validation for consumers.

The device functions as a self-service kiosk from which customers can make withdrawals, transfers, and payments, view statements, purchase airtime and electricity and perform card cancellations. It also people to open new accounts by reading a consumer’s thumb print.

“The TouchPoint validates a customer’s identity by scanning a fingerprint placed on the biometric reader and it can detect false fingerprints to prevent fraud,” said Lee-Anne van Zyl, CEO of FNB Points of Presence.

“The identity of the customer is then verified with the department of home affairs to ensure the self-service account opening complies with the relevant laws.”

FNB said the device had been successfully piloted in Gauteng province since November 2017 and the bank aimed to place the devices in branches, community retailers in townships and rural areas across South Africa.

“The introduction of biometric validation on self-service devices is an important step to making banking much more accessible to South African communities,” said van Zyl.

“This is a continuation of our journey to broaden financial inclusion.”

Source: Supermarket & Retailer

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My Office News Ⓒ 2017 - Designed by A Collective


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