Capitec ATM fraud warning

Capitec warned consumers to be careful when using ATMs, since scammers may try to steal their PIN and card details.

There are several types of fraud which are prevalent at the moment. Capitec told Daily Investor that it is seeing shoulder surfing used to capture Cash Send voucher numbers and PINs, followed by quick redemption.

“This mirrors card swapping, observation, and fast action,” Capitec said in a statement. The bank also recently sent an alert warning its customers about ATM fraud.

“ATMs remain a consistent target, with criminals relying on distraction, shoulder surfing, and device tampering, especially where clients are unfamiliar with the ATMs.”

Capitec explained that customers can identify scammers at ATMs by looking out for people standing unusually close or being overly helpful. Fraudsters may also use distraction tactics while the consumer handles their cash, vouchers, or card.

Visible tampering with the ATM, loose panels, added devices, or anything protruding from the card slot are other giveaways that fraud may be occurring.

The bank said that clients can stay safe by using these tips:

• Shield PIN and any voucher numbers with a hand
• Ignore offers of help from strangers
• Stay alert to people loitering or trying to view the ATM screen
• If anything feels off, use another ATM
• Before leaving, clients must check that the card in their hand is their own

If a customer suspects that they may have fallen victim to ATM fraud, Capitec said that they should immediately stop their card using their banking app or call their bank’s client care centre.

If voucher numbers or PINs were exposed and vouchers redeemed, the victim also needs to report this to their bank. “Additionally, report the incident to SAPS and monitor your account for unauthorised transactions.”

If details are compromised, Capitec explained that there are also extra protections available to consumers:

• Manage which transactions your card allows in the app, online purchases, international transactions, and tap to pay
• Set daily limits for withdrawals, card machine purchases, and online transactions
• Turn on transaction messages for money in and money out
• Never share your card or PIN with anyone, including family or friends
• South Africa waves ATMs goodbye

South Africa waves ATMs goodbye

Interestingly, Capitec’s ATM fraud warning comes at a time when all of South Africa’s major banks have been reducing the number of their ATMs and shifting towards cashless transactions.

For example, Standard Bank has reduced the number of ATMs in South Africa from 3,544 to 3,448 over the past 18 months. The bank has expressed that it is shifting to a smaller number of more efficient ATMs.

On 17 September, Standard Bank announced it is revamping its physical banking network, with some branches becoming fully cashless.

With some of its branches seeing a significant reduction in cash activity, the bank has decided to shift towards cashless branches, which will focus on sales, financial advisory, digital services, and staff-assisted complex services.

To further streamline branch operations, Standard Bank has also upgraded all its ATMs in South Africa to faster, next-generation machines.

Standard Bank’s head of personal and private banking, Kabelo Makeke, previously told Daily Investor that the change to fewer, smarter ATMs is driven by declining demand for cash withdrawals.

He explained that cash withdrawals have still not recovered to pre-pandemic levels. This has left the bank with little choice but to shut down underutilised ATMs.

“In recent years, we have seen a significant increase in ATM cash deposits driven by branch cash migration.”

“ATM cash withdrawals remain largely flat whilst there is continued decline in utilisation of non-cash ATM services due to digital migration.”

In response to these trends, the bank has undertaken to remove and relocate low-transacting ATMs to areas that are more convenient and accessible to clients.