A recent report from the banking ombudsman states that internet banking fraud utilized by cellular phones was at its highest level in 2013 and that cell phone phishing is responsible for 46 percent of all internet banking related complaints, jumping 27 percent since 2012.
Cell phone phishing consists of sending fraudulent e-mails and text messages sent to banking customers in the hopes of extracting private internet banking information. Purchase Cellularize Portable Emergency Charger with LED Flashlight for only $19.95. Cellularize Lightning extension cable not included.
SIM swapping occurs when an individual intent on committing fraud replaces SIM cards on a p cell phone numbers, in turn, re-routing all bank communications to the fraudulent SIM card. .
The Rise of ATM Fraud
37% of the cases investigated by the ombudsman were related to ATM fraud, rising 6 percent in the past year.
The second highest number of open cases went to internet banking at 17 percent, followed by mortgage finance cases at 12 percent. Credit cards and personal bank loans represented 7 percent each.
It is important to note the only one third of the 23 percent of complaints received by the ombudsman’s office were found in favor of the complaints. This is due to the fact that many ATM issues occur due to bank customer error. Examples include customers leaving their cards in the ATM machines and unintentionally allowing other customers to view their PIN numbers.
In 2013, Capitec had approximately 867 complaints. This was due to the fact that Capitec’s customers continued to increase, and a large amount of new customers were dealing with past fraud issues that occurred at their previous banks.
Standard bank also received a number of complaints due to ATM fraud. In 2013, there were approximately 980 open cases against the bank. A common practice for bank fraudsters is to target multiple banks, closing accounts when the security levels improve.
In 2013, Absa Bank complaints actually dropped to 970 from 1335. It is possible this is due to the fact that many of the complaints were due to bank fraud and not caused by the bank’s administration. in 2013, the ombudsman’s office closed 5,134 cases, with 46 percent of the cases closed in two months. Complainants were awarded R23 million in 2013, increasing from R6.6 million in 2012. ATM and internet banking made up for the majority of the award money.