ATM card fraud on the rise in S.Africa - Sabric

ATM card fraud is on the rise in South Africa, with perpetrators using increasingly sophisticated methods to steal from unsuspecting bank customers. Kalyani Pillay, the CEO of the South African Banking Risk Information Centre (Sabric), recently shared insights into the modus operandi of these criminals and what consumers can do to protect themselves. One of the prevalent tactics used by scammers is to approach bank customers at ATMs under the guise of offering assistance. These perpetrators are well-dressed and often create a sense of trust in their victims, leading them to believe they are being helped. The scammers manipulate the ATM screen to confuse the customer, prompting them to enter their PIN. With sleight of hand, the criminals swap the customer's card with a similar one and make off with the original card and PIN. The unsuspecting victim is left stranded at the ATM, while the fraudsters quickly withdraw cash from nearby ATMs. Despite awareness campaigns, many individuals continue to fall victim to these schemes, highlighting the need for constant vigilance and adherence to security precautions. Sabric is working to quantify the extent of financial losses due to ATM fraud, with initial estimates suggesting a significant sum of money being stolen annually. However, challenges in tracking and reporting these incidents, as well as limited resources for constant ATM security, pose obstacles in curbing this criminal activity. In light of these challenges, educating the public on safe banking practices and promoting awareness of potential fraud scenarios remain critical in safeguarding consumers' financial well-being.