Nedbank fraud alert for South Africa

Nedbank has issued a fraud alert to its customers, with debit card swipe transactions being disabled.
The bank said that due to ongoing debit card fraud, debit card swipe transactions at toll gates will be disabled from 20 January 2025.
Its customers can use credit cards, garage cards, cash, or tags at the nation’s toll gates.
“Toll gates are in the process of being converted to tap functionality and those already enabled will accept contactless debit, credit cards and smart devices linked to contactless payment apps,” said Nedbank.
Although Nedbank failed to explain what fraud occurred, previous reports suggest card cloning occurs frequently at toll booths along the nation’s highways.
MyBroadband noted that paying with cards at toll gates can cause issues as motorists must hand over their cards to collectors.
Toll plazas across the country are being updated to use contactless payments.
Ahead of the festive season, FNB, Visa and SANRAL announced that over 88 lanes received a new contactless payment system along the N3 toll route between Gauteng and KwaZulu-Natal at De Hoek, Wilge, Tugela, Mooi River plazas and the on and off ramps.
Moreover, 73 lanes had tap payment terminals installed along the N4 toll route between Pretoria and Mozambique at Diamond Hill, Middelburg, Machado, and Nkomazi plazas as well as the on and off ramps.
FNB said that the new system will enhance security, reduce the possibility of fraud and allow users to keep cards or payment devices on their person during payment.
Other scams to watch out for
The fraud is just a highlight of the several tactics used by fraudsters and scammers in South Africa.
For instance, Nedbank previously raised the issue of phishing and vishing scams.
The Big Four banks said that scammers often pose as bank representatives or trusted entities, creating a false sense of urgency to extract personal details.
Moreover, sim-swap fraud continues to rise, with fraudsters duplicating a victim’s SIM card by deceiving mobile service providers, which enables them to intercept banking OTPs. Capitec said that customers should monitor their mobile network disruptions closely.
A new tactic, money mule scams, involves criminals recruiting and also sees criminals use the bank accounts of victims for transferring illicit funds under the guise of legitimate activities. This scam can lead to legal repercussions, such as money laundering charges, for the victims.
Moreover, fake social media links and profiles have become a prominent method of scamming, with fraudsters creating counterfeit accounts, impersonating banks or trusted entities to lure individuals into providing their login credentials or downloading malware.
Discovery Bank said that users should verify links and avoid sharing sensitive information on social platforms. Offers that seem good to be true, likely are.
ATM fraud also remains a major concern, including card skilling and distraction tactics.
Criminals often pose as helpful bystanders but then switch cards or steal PINs. Standard Bank said that customers should avoid accepting assistance from strangers and use ATMs in well-lit areas.
Online shopping fraud has also surged, with fraudsters creating fake websites to steal payment details or deliver substandard products.
Read: Downgrade warning for one of South Africa’s major banks