Publications
Partners
If you are an avid user of the more convenient and efficient mode of banking – digital banking – you run the risk of falling victim to a multitude of digital banking scams meant to defraud you of your hard earned money.
The South African Banking Risk Information Centre (Sabric) on Thursday released the shocking digital banking crime statistics which showed a meteoric rise in mobile banking, online banking and banking apps crimes.
Mobile banking crimes increased by 100% during the period January to August 2018, as compared to the same period last year - resulting in gross losses of up to R24 million.
During this same period Sabric recorded an increase of 44% with respect to online banking scams, resulting in gross losses of R90 million. Banking app crimes increased by 20%, resulting in R70 million worth of gross losses.
Releasing the digital banking crime states, Sabric chief executive, Kalyani Pillay said since the advent of digital technology in the banking sector criminal elements have gone to great lengths in order to identify and manipulate defects in this convenient and efficient mode of banking.
“Criminals are always looking for ways to exploit digital platforms to defraud victims, but the mitigation strategies deployed by banks are very robust, so it is easier to target people as they are the weakest link,” explained Pillay.
According to Sabric – a non-profit company formed by South African banks to support the banking industry in combating crime – criminals are very skilled at using social engineering to manipulate their victims into divulging their personal or confidential information.
“They capitalize on the fact that not all digital banking clients are digitally literate and exploit this vulnerability. Using technology, coupled with social engineering, criminals can gather sufficient information to impersonate victims, bypassing bank security protocols,” revealed Pillay.
These cyber criminals have a number of modus operandi to swindle their victims, which include:
• Phishing: which involves “the fraudulent practice of sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers”;
•Vishing: the fraudulent practice of making phone calls or leaving voice messages purporting to be from reputable companies in order to induce individuals to reveal personal information, such as bank details and credit card numbers;
• Installation of malware onto devices: this is done through manipulating victims into clicking on a link which enables the criminal to steal sufficient personal information to access their online banking profile.
“Although phishing scams are not new, criminals are always finding new ways to trick consumers by taking advantage of the slick, conveniet and the efficient use of digital platforms. In one such modus operandi, the criminal sends the victim an email that purports to be from a trusted organisation that the victim has legitimate dealings with.
“The email will display all the characteristics of customer centricity and promise to optimize the victims user experience or exclusively upgrade their benefits if they click on the link provided,” explained Pillay.
The banking crimes combating organisation also revealed that the most predominantly used method by those perpetuating these digital banking crimes were those that play on the victim’s fears.
“These criminals send victims emails that appear to be from their bank, stating that a fraudulent transaction has been made. The victim is then given the opportunity to report the ‘fraud’ by clicking on a link, and in their state of panic, usually fall victim to this,” said Pillay.
Pillay advised consumers to be aware of the fact that they are their money’s best protection on all digital platforms and stressed the importance of not sharing confidential information with anyone or clicking on links in unsolicited emails.
Sabric is working closely with the South African Police Services and mobile network operators to address this scourge.
 |
| ||||||||||||
| |||||||||||||
