Standard Bank fraud warning

Standard Bank has warned that card-not-present (CNP) fraud is on the rise in South Africa as consumers switch to digital platforms to make purchases. 

Delivery apps, e-hailing, video on demand and online shopping have become a staple of the current digital age, the bank explained. 

Consumers rely on online platforms with targeted online ads when shopping online. With this convenience comes a rising threat of CNP fraud.

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

Khan explained that what makes this kind of fraud so pernicious is that fraudsters don’t need their physical cards, and it can often happen in the background, being noticed too late. 

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

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

This fraud is increasingly common on platforms with malicious pop-up ads. Food delivery, e-hailing services and social media platforms where advertisements are placed are prime targets as they store sensitive data for seamless transactions. 

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

“Many false ads 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 advertising campaigns virtually are particularly vulnerable and enable fraudsters to use stolen card details.

Additionally, fraudsters have realised that Google’s search engine uses algorithms to provide consumers with the most relevant results. 

They exploit 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.

Fraudsters’ new tactics

This is not the first time Standard Bank has warned South Africans about rising online fraud and scamming. It previously cautioned that criminals particularly target individuals looking to make significant life changes. 

The bank said that fraudsters are intensifying their tactics to steal credit card details or physical money at ATMs. 

Scammers are targeting these groups of people with increasingly sophisticated schemes to gain access to private information.

One common scam involves altering ATM language settings to confuse users, while another sees fraudsters activating the “cardless function” to disorient customers. 

Another tactic, especially during busy periods, is to jam card slots or PIN pads to steal cards or money.

Khan also warns about “shoulder surfing,” where someone watches you enter your PIN to steal it. This does not occur only at ATMs but can occur whenever you use your credit or debit card.

She advised customers to always check for signs of tampering on ATMs or point-of-sale devices, as card skimming incidents have been reported.

Standard Bank said fraud rose throughout the festive season, including ATM fraud, credit card scams, and vishing. 

Vishing involves fraudsters using phone calls or voice messages to trick people into sharing personal information, like bank details or passwords.

This scam often targets vulnerable individuals, with fraudsters posing as bank officials, tax agents, or investment firms.

They trick victims into taking actions that jeopardise the security of their bank accounts, sometimes claiming that the account is at risk and urging them to transfer their money to a different account for “safekeeping”.

Khan outlined the below ways in which South Africans can protect themselves from the rise in online fraud –

• 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” as opposed to “http” and a padlock icon).
• Be cautious of suspicious of ads offering products or services that seem too good to be true.
• Enable two-factor authentication 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. Instead, type the website’s URL directly into your browser.
• Keep your antivirus software up to date to help detect malicious links.

As online fraud becomes sophisticated with the emergence of AI technology, Standard Bank urged consumers to stay vigilant and protect their banking information. 

Never let your card out of sight or share sensitive details on any platform, including phone calls. Standard Bank encourages its customers to use the card settings feature on the Banking App to enable or disable transaction types as needed.