Card Fraud

May 11, 2017

According to the latest fraud data from the SA Banking Risk Information Centre (Sabric), South Africans have lost almost R4.5 billion to credit and debit card fraud since 2010. Perpetrators use a variety of card fraud methods and keep changing their approach to trick their victims. Card fraud is difficult for the banking industry, because perpetrators prey on the vulnerabilities of bank customers and do not target banking systems. Therefore, it is important that you understand the different types of credit and debit fraud in order to avoid becoming a victim of card fraud.

Counterfeit card fraud

Perpetrators obtain illegally manufactured cards that use personal information stolen from the magnetic strip of a genuinely issued card – the information is stolen from a card using a card skimming device. In some cases, a lost, stolen or old card is encoded with the new information that had been stolen from a genuine card, for the purpose of committing counterfeit card fraud.

Card not present fraud

With Card Not Present (CNP) fraud, neither the card nor the cardholder is present at the point of sale. CNP fraud refers to the fraudulent transactions made when orders for goods, travel or accommodation are placed telephonically, over the internet or through the mail.

Lost card fraud

Lost card fraud refers to fraudulent transactions conducted on a valid debit or credit card that had been lost by the cardholder.

Stolen card fraud

Stolen card fraud refers to fraudulent transactions conducted on a validly debit or credit card that was stolen from the cardholder.

False application fraud

False application fraud occurs when fraudulent transactions are conducted on a card that was acquired by falsifying a card application.

Account takeover fraud

Account takeover occurs when a perpetrator takes over someone’s account and uses the account for their own benefit, after posing as the legitimate account holder.

Not received issued card fraud

Not received issued card fraud refers to cards that are intercepted by perpetrators before they reach the authentic customers. The perpetrators then use these cards for fraudulent transactions.

At PayDay Loans, we strongly urge all of our clients to ensure that their credit and debit cards are kept safe at all times, in order to avoid becoming the victim of card fraud.

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