Standard Bank fraud alert for South Africa

Standard Bank has warned customers about the rising threat of Card-Not-Present (CNP) fraud in South Africa.

South Africa’s largest bank by assets under management said that delivery apps, e-hailing, video on demand, and online shopping have become staples of the current digital age.

Consumers also rely on online platforms with targeted online ads when shopping. However, this increase in convenience has also led to the rising threat of CNP fraud.

“As digital transactions grow, banks are detecting more opportunistic attempts by cybercriminals to exploit online platforms,” said Athaly Khan, Head of Fraud Risk Management at Standard Bank.

CNP fraud occurs when stolen card details are used for online purchases and subscriptions with no physical card required.

Fraudsters will exploit vulnerabilities in e-commerce systems to steal card numbers, expiry dates, and card verification values (CVVs).

Fraud is increasingly common on platforms with malicious pop-up ads. Food delivery, e-hailing services, and social media platforms are primary targets, as they store sensitive data for ease of use.

Some victims unknowingly enter details on fake or cloned websites, giving over their information to fraudsters.

“Many of the false ads, in particular promoting scams, Ponzi schemes, and fake investments, are funded using stolen card details,” said Khan.

Digital and social media platforms that allow users to pay for Ad campaigns virtually are especially vulnerable and enable fraudsters to use stolen card details.

Fraudsters have also realised that the Google search engine uses algorithms to provide consumers with the most relevant results.

They are thus exploiting algorithms to target consumers with misleading ads based on their search history.

“After certain searches, you may receive unsolicited offers, urging you to click on malicious links or request a callback,” Khan warned.

How to protect yourself

Standard Bank said that customers can protect themselves by following the tips below:

• Only download Apps from official stores like Google Play or the Apple App Store.
• Regularly update Apps to ensure you have the latest security features.
• Avoid saving your card details in Apps unless necessary, and use secure payment options like PayPal or Apple Pay when possible.
• Double-check the URL of any page you’re directed to. Ensure it matches the official domain (look for “https” and a padlock icon).
• Be cautious of suspicious ads offering products or services that seem too good to be true.
• Enable two-factor authentication (2FA) on your accounts to add an extra layer of security.
• Use a reputable ad-blocking tool to reduce exposure to unwanted pop-ups.
• Never click on pop-up ads or links from unfamiliar sources. Always type the website’s URL directly into your browser instead.
• Keep your antivirus software up to date to help detect malicious links.

With the emergence of AI technology, fraud has become sophisticated. Standard Bank has urged consumers to stay vigilant and protect their banking information.

They should never put their card out of sight or share sensitive details on any platform, such as phone calls.

Standard Bank encourages its customers to use the Banking App’s card settings feature to enable or disable transaction types as needed. If something seems too good to be true, it generally is.

Another scam to look out for

Standard Bank recently warned its customers about a fraudulent WhatsApp group making the rounds on social media.

It falsely claims to have connections with Standard Bank, SBG Securities, and SBG Securities Online Share Trading. 

It also mentions the bank’s Financial Sector Conduct Authority operating license and Group Chief Risk Officer, David Hodnett.

Standard Bank said that the information is fraudulent, adding that customers should remain vigilant to avoid falling victim to phishing scams.