{"id":61249,"date":"2014-06-25T11:50:37","date_gmt":"2014-06-25T09:50:37","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=61249"},"modified":"2014-06-25T11:54:31","modified_gmt":"2014-06-25T09:54:31","slug":"card-fraud-shocker-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/61249\/card-fraud-shocker-in-south-africa\/","title":{"rendered":"Card fraud shocker in South Africa"},"content":{"rendered":"

Nearly a third of South Africans have been a victim of card fraud over the past five years, according to a new global study.<\/p>\n

At the end of last year, the SA Banking Risk Information Centre (Sabric) said that the value of debit card fraud losses decreased by 42% between January and September of 2013, compared to the same period in 2012.<\/p>\n

It fell from R204 million to R117.7 million over the two years, it said.<\/p>\n

A new fraud study of more than 6,100 consumers across 20 countries, including South Africa, revealed that one in four consumers is a victim of card fraud in the last five years, while locally, that number stands at three in ten in 2014, up from a quarter in 2012.<\/p>\n

The study, conducted by universal payments company, ACI Worldwide and Aite Group, also highlighted that nearly 25% of consumers changed financial institutions due to dissatisfaction after experiencing fraud.<\/p>\n

Card fraud is comprised of unauthorized activity on three types of payment cards\u2014debit, credit and prepaid.<\/p>\n

South Africa was seventh on the list, behind the UAE (44%), China (42%), India (41%), the US (41%), Mexico (33%), and Australia (31%).<\/p>\n

\"Card<\/a>In 2014, 14% of debit and credit card holders cite having experienced fraud multiple times during the past five years, while 23% changed financial institutions due to dissatisfaction after experiencing fraud.<\/p>\n

\u201cConsumers are increasingly concerned about fraud, and are losing confidence on a variety of levels,\u201d said Mike Braatz, senior vice president, Payments Risk Management Solutions, ACI Worldwide.<\/p>\n

\u201cThey are unsure that their financial institutions can protect them against fraud; they use replacement cards less often due to a loss of confidence in the card or card issuer, after experiencing fraud; and post-fraud, they often change providers or their cards go to back of wallet. This has immediate and long-term implications on customer loyalty, revenue and fee income.\u201d<\/p>\n

South Africa<\/strong><\/p>\n

Questioning a sample of 314 people in South Africa, the survey found that 22% of respondents left their smartphone unlocked when not using it.<\/p>\n

Up to 16% used online banking or Internet shopping without security software or on a public computer in SA, while 11% made a note of their PIN and carried it with them or kept it with their card.<\/p>\n

When question on the following: How happy were you with the treatment from your financial institution when you experienced card fraud?<\/p>\n

Three in 10 South African respondents said they were \u201cvery happy\u201d, while 18% said they were \u201cvery unhappy\u201d.<\/p>\n

And asked if as a result of their experience with fraud, whether they had change their financial institution or credit card company? as many as 17% of local respondents said they did.<\/p>\n

And when asked the following: Do you have confidence in your financial institution to protect you from card fraud?<\/p>\n

62% of local respondents said: ‘Yes, to an extent, they’re doing what they can’, while 24% said ‘Yes, absolute confidence’, while only 3% said ‘No, I have very little confidence they can’.<\/p>\n

The report noted that consumers in EMEA are largely educated to ignore emails and calls requesting details about their bank accounts, although 9% of consumers in Russia and
\nSouth Africa still respond.<\/p>\n

More on South Africa<\/h3>\n

Profile of a South African fraudster<\/strong><\/a><\/p>\n

Debit card fraud costs SA R117.7 million<\/strong><\/a><\/p>\n

FNB fraudulent transactions down 30%<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Nearly a third of South Africans have been a victim of card fraud over the past five years, according to a new global study.<\/p>\n","protected":false},"author":10,"featured_media":53351,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[8219,8217,26],"class_list":["post-61249","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-aci-worldwide","tag-aite","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/61249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=61249"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/61249\/revisions"}],"predecessor-version":[{"id":61263,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/61249\/revisions\/61263"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/53351"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=61249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=61249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=61249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}