Absa fraud warning – including a rise in kidnappings

Banking fraud and scams pose a massive threat to consumers and cost them and the economy billions every year.
According to the Southern African Fraud Prevention Service, fraud incidents have surged 32% this year, and impersonation fraud victims have increased by 54%.
BusinessTech spoke to Ulrich Janse van Rensburg, Chief Fraud Strategy & Analytics Officer at Absa Everyday Banking, to hear about the common banking scams that they are seeing currently.
“Vishing,” or voice-linked fraud, is one of the most common scams currently involving fraudsters calling customers and creating a sense of panic.
They claim the customer has been a victim of fraud and ask them to cooperate in resolving the issue.
They may ask the customer to download an app that gives them remote access to their device, allowing them to steal information or funds.
Another tactic involves telling the customer to move their money to a “safe account,” which is actually controlled by the scammer.
In other cases, they convince the customer to approve a transaction, tricking them into thinking they are reversing a fraudulent charge. In reality, they’re authorising an e-commerce payment for the scammer.
Similar to vishing, Janse van Rensburg said that “smishing” is another common scam Absa is currently seeing.
It involves consumers responding to text messages, often with an alarming message about a recent transaction they didn’t make.
For example, a message might claim that you’ve purchased from Takealot for R1,500 and instruct you to call a number for assistance. When you dial that number, you’re speaking to fraudsters who follow the same tactics used in voice scams.
Another prevalent type of scam is the deposit scam, Janse van Rensburg explained.
Although scams have been ongoing, he said that they tend to increase during events like Cyber Monday and Black Friday. Typically, you’ll see offers that seem too good to be true for online purchases.
Once you make a deposit for these enticing deals, you later find out that the products don’t exist, and your money is gone.
When you realise you’ve been scammed, the funds have already left your account, making it difficult to recover your losses.

Another concern is business email compromise, he said.
This occurs when an employee’s email account is compromised after accidentally clicking on a malicious link, which downloads malware onto their device.
Once the fraudsters access the employee’s inbox, they can navigate through the emails and gather sensitive information.
Fraudsters may then send revised invoices with altered bank account details to clients, misleading them into making payments to scammers instead of legitimate companies.
The recipients often don’t realise that the emails are not genuine unless they utilise account verification services within their online banking platforms.
Janse van Rensburg said that another scam consumers should be looking out for is kidnappings.
While Absa has not reported many cases, it’s important to highlight the issue of kidnappings. In some instances, individuals are targeted and forced to transfer funds.
Though these cases are rare, they remain a concerning trend that consumers should be aware of.
To avoid falling victim to such scams, it’s crucial to stay vigilant, much like being cautious in a carjacking situation by being aware of your surroundings.
Finally, card swapping is another growing trend in banking fraud, particularly at ATMs. This occurs when a consumer approaches an ATM to make a transaction, and during the process, a perpetrator intervenes and steals their card.
This type of scam often involves what’s known as “shoulder surfing,” where the fraudster observes the consumer entering their PIN.
Once they have the card and PIN, the scammer can quickly use the stolen card to make unauthorised transactions.
Because these events can happen rapidly, consumers need to respond swiftly to protect themselves from such fraud.
Combatting

While incidents of banking fraud may be on the rise, consumers can take steps to protect themselves and safeguard their accounts.
To combat banking fraud, Janse van Rensburg explained that Absa has implemented several controls to enhance security.
They use real-time monitoring to assess customer behaviour and identify any unusual activity. If suspicious behaviour is detected, they may call the customer or send a WhatsApp message to confirm the transaction’s legitimacy.
This method is particularly effective because customers tend to respond more to WhatsApp messages than traditional text messages.
When customers receive a message asking if a transaction is legitimate, they can respond “yes” or “no.”
If they confirm it’s fraud, Absa will take immediate action to address the scam.
However, there are cases where customers mistakenly confirm high-value transactions, only to later realise they have been scammed when they don’t receive their goods.
In the case of ATM card swapping or other forms of digital fraud, Absa monitors for unusual behaviour and contacts customers when necessary.
However, situations involving kidnappings are more complex. If a customer is in danger and declines a transaction, the institution may choose not to intervene to avoid escalating the situation.
The customer’s safety takes precedence, and employees are trained to navigate these sensitive scenarios carefully.
Overall, while Absa takes significant measures to prevent fraud, the complexity of certain situations, like kidnappings, poses challenges for intervention.
“If we’re on a call with a customer, we don’t want the customer at that point in time to alert us that they’ve been hijacked because that’s going to put them in danger.”
Additionally, he explained that it would be very difficult for an employee to decide on someone’s financial well-being versus their life.
“So in those instances, we try not to intervene,” Janse van Rensburg said.
“There are broader conversations that we’re currently busy with at a regulated level to try and find one solution that the industry needs to adopt on the scam-related matters.”

Janse van Rensburg added that Absa is actively working to raise awareness about these scams. This includes hosting business seminars and collaborating with organisations such as EEA.org, which is part of the South African Fraud Prevention Services.
The EEA.org platform provides resources to help identify fraudulent websites and promotes awareness of various scam-related matters. It also offers a browser extension that helps users detect false advertising and other scams online.
Additionally, he said that Absa encourages consumers to utilise account verification services during their online banking activities. This service allows customers to validate the ownership of an account before depositing funds.
For example, if someone claims to be a certain company, customers can use the service to ensure the details match up.
If there are discrepancies, such as different names or bank information, consumers are advised to contact the company directly using verified contact information rather than relying on what is presented in the invoice or letterhead.
This approach helps to create greater awareness and protect consumers from falling victim to scams.
“It’s very important to know what to look out for. We often say don’t tell customers what not to do because that negative approach shuts people down, and they don’t pay attention. What is important is that you recognise the threat.”
Here are some key points to consider to avoid banking fraud, according to Janse van Rensburg:
- Monitor Transactions: If you notice transactions you didn’t initiate, question whether they could be fraudulent.
- Use Verified Contact Information: If in doubt, call your bank’s fraud hotline. Make sure to store this number on your phone instead of using numbers provided in unsolicited communications. Find the correct number on your bank’s official website.
- Stay Alert: Be aware of your surroundings, especially when using an ATM or carrying your devices in public.
- Be Cautious with Online Purchases: Avoid clicking on links that promise great deals. Instead, type the company’s website address directly into your browser. Scammers often create fake websites that look identical to legitimate ones, but they are fraudulent.
- Research Before Buying: If a deal seems too good to be true, investigate the platform. Look for reviews or reports of past fraud related to the site.
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