The annual crime statistics for banking fraud 2018 in South Africa has been released by the South African Banking Risk Information Centre (SABRIC) and banking fraud is very much on the rise.

SABRIC is concerned about the increase in phishing and banking fraud. SABRIC CEO, Kalyani Pillay says, “We are concerned about some of the increases, which clearly reflect that criminals will take every opportunity to get their hands on bank customers’ money,”

An increase of 18% in gross card fraud reaching a staggering total of R873,394,351, 18.4% on credit card fraud and an increase of 17.5% on debit card fraud. There is also a 42.5% of lost or stolen debit card fraud increase with people falling victim of fraud at the ATM whilst transacting.

The rise on online and mobile fraud is at 75.3% across all banking platforms in the last year. “In 2018, 23,466 incidents across banking apps, online banking and mobile banking amounted to R262,826,888 in gross losses,”  as stated by SABRIC. Incidents of banking app fraud also increased with 55.4% in comparison to last year. Imagine what this does to trust levels that individuals have for their banks. At the lower end of the market, in particular, trust will be destroyed and customers will revert to cash and keeping their money under the proverbial mattress. 33.5% of Kenyan’s have been affected by Cybercrime; 31,9% of Nigerians and even in the relatively small economy of Namibia, 25% of the banked population have been impacted by Cybercrime. Globally, 40% of cardholders have been hit by crime; it is an industry that will rake in $1,5 trillion this year. The numbers of horrific and hardly encouraging for customers. There are of course solutions at hand.

SABRIC CEO, Kalyani Pillay also continues to say,

“When it comes to online banking, beware of Phishing emails that request that you click on a link, the link directs you to a ‘spoofed’ website designed to obtain, verify or update contact details or other sensitive financial information.”

It shows that everyone is a potential victim to fraud and that it is of utmost importance to make sure you keep your personal and banking information private.

We appreciate that there is a fine line between implementing strong verification and authentication for security reasons but this has to be balanced with the customer need for usability and a reasonable experience. The Banks cannot afford the financial and reputational risk associated with weak security but at the same time cannot afford to lose customers because it is impossible for a customer to remember and go through the complexity of stringent authentication.

For a single customer should they contact their bank’s call centre, there is a way that they are authenticated that the customer has to remember. Should the customer use a card that is issued by the same bank, at a Point of sale device or at an ATM, there is another way that the customer has to verify themselves – typically a pin that is issued with the card. Should this same customer now want to do a mobile banking transaction – with the same bank – there is yet another method that is used to verify the identity of the customer. A final example is if that customer now wishes to use the internet banking facility offered by the same bank – you have guessed it – yet another way of being authenticated. Most customers today are multi banked  – each with a different way of authenticating the customer depending on the channel they use. There simply has to be a better way of satisfying the bank in terms of state of the art security coupled with providing the customer with a seamless and frictionless user experience. WIZZIT is very proud to have developed a global solution that satisfies these requirements and meets international standards.

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