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The South African Banking Risk Information Centre (SABRIC), has released its annual crime statistics which showed that in 2020, digital banking fraud increased by 33%.
SABRIC is company that was formed by South African banks to support the banking industry in the combating of crime. Its clients are South African banks and major Cash in Transit (CIT) companies.
Its principal business is to detect, prevent and reduce organised crime in the banking industry through effective public private partnerships.
According to a report, COVID-19, in conjunction with the implementation of regulations of the Disaster Management Act had a notable influence on financial crime trends in 2020.
It triggered changes in human behaviour, human movement, and policing, creating new opportunities for criminals which significantly impacted the number of crime incidents.
While some crime types decreased, others increased as criminals exploited COVID-19 for their own gain. Overall, SABRIC says it has seen an increase in banking crime incidents.
As customers turned to online shopping and settling payments on app, criminals enhanced their efforts to phish customers to steal their personal data to defraud them on digital and online platforms, noted SABRIC.
The statistics also showed that debit card fraud rose by 22%, while on a positive note, credit card fraud decreased by 7%.
SABRIC explained that contact crime was impacted by the restriction of movement and visible policing resulting in a decrease in incidents. Associated robberies saw a decrease of 24% in 2020 when compared to 2019 with decreases evident in the Free State, the Eastern Cape and Mpumalanga provinces.
While ATM attacks decreased by 9% overall, ATM explosive incidents increased by 20%.
Cash-in-transit (CIT) robberies decreased significantly due to the Level 5 lockdown in April and May of 2020, but once restrictions were lifted, these increased again by 22% as criminals were able to move with fewer restrictions and fear of roadblocks and searches.
Robberies and burglaries also increased by 42% and 12% respectively, noted the report.
Nischal Mewalall, CEO of SABRIC said: “Your personal data, when combined with technology has become the new key to the safe that holds your money in a bank, so you must safeguard your data to prevent criminals getting access to your safe.”
He further warned that looking ahead, digital banking fraud and data breaches will represent a significant threat to customers and banks, because even the best security and technology can be compromised when criminals source and use legitimate data illegally, to carry out a crime.
Mewalall also warns bank customers to never click on links in unsolicited emails as these links are used in phishing emails to drive people to “spoofed” websites which look like legitimate online retailers, complete with enticing images and convincing taglines.
“Criminals use these bogus websites to harvest bank card details to make online purchases using your account. We are still seeing lots of scam’s advertising seemingly incredible deals for personal protective equipment, sanitiser and fake vaccines that exploit people’s concern for their health and safety,” concludes Mewalall.
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