Capitec ATM warning

Capitec has warned its clients about scammers targeting ATMs during the festive season to steal their money.

Capitec is South Africa’s largest bank by clients, with 22 million active users. It is also one of the most valuable banks in South Africa, with a market cap of R382 billion.

The bank services a wide range of clients, from working-class individuals to small businesses and large companies.

It has outperformed its peers by focusing on affordability, accessibility, personal service and simplicity.

The strategy worked well. Capitec is now the largest bank in South Africa by client base and one of the best-performing stocks on the JSE.

In a recent post, Capitec alerted its clients to automated teller machines (ATMs) scams during the festive season.

It warned that scammers use different ways to trick people at an ATM, which may distract them while they’re busy with a transaction to swap their card.

“They could also tamper with the ATM and insert a device that looks like the slot you put your card into to steal your card information,” the bank said.

Capitec added that scammers might even stand so close behind the client to get eyes on your PIN.

Capitec highlighted three common ATM scams which clients should take note of:

• Card swapping – Scammers often work in groups. One person distracts you while another swaps your card. You leave the ATM with someone else’s card, and the scammers quickly use your card to withdraw money from your account before you realise what happened.

• Card skimming – Scammers install a hidden device over the card slot that copies your card information. They might also use a small camera to record your PIN as you enter it. These devices blend in with the ATM and are often hard to spot.

• Card trapping – Scammers put a thin layer of plastic into the card slot that traps your card inside the ATM. You can withdraw money without issues, but your card stays inside the machine. When you leave, the scammers immediately withdraw money from your account.

The South African Banking Risk Information Centre (SABRIC) said ATM attacks continue to affect the local banking sector, especially in Gauteng.

“Fraudsters continued to employ various tactics at ATMs, misleading customers by claiming that certain ATM functionalities had changed,” it said.

“They would then offer assistance with the withdrawal process and use this opportunity to obtain the client’s card and PIN.”

SABRIC said high-risk ATMs were identified and communicated to banks, prompting the mobilisation of their service providers to enhance security.

Capitec provided a list of things its clients can do to protect themselves against ATM scams.

• Always be mindful of your surroundings when using an ATM, and never accept help from strangers.

• Ensure you cover the PIN pad when entering your PIN, even if you’re alone.

• Never accept help from strangers. Go into the bank if you need help.

• Don’t use ATMs where the card slot, keypad or screen has visibly been tampered with.

• Always make sure you leave with your card.

“If you think that someone may have interfered with your transaction at the ATM and that your card and PIN may have been compromised, stop your card immediately,” it said.