Technology has made banking easier.
So much so that banks that haven’t embraced all of the tech out there often find themselves losing customers.
Seth will tell you all about why he switched from Nedbank to FNB, and it has a lot to do with what the latter has to offer in terms of online banking.
At the same time, tech-enhanced banking has also opened up new ways for scammers to swindle unsuspecting people out of their hard-earned Randelas.
MyBroadband reports that SA fraudsters are becoming more and more sophisticated in their use of tech to obtain people’s personal information.
“There is an upsurge in social engineering globally, and fraudsters use personal data from data breaches to impersonate banks,” said [Head of Fraud Strategy for Everyday Banking at Absa Group] Ulrich Janse van Rensburg.
Rakesh Ranchod, Nedbank Executive for Card, Payments, and Transactional Customer Experience, agrees with him:
“Clients are called and cohered into divulging sensitive information pertaining to their banking profile, bank cards or passwords which are in turn used to commit fraud against the clients’ accounts or access their banking profiles.”
Janse van Rensburg said studies have shown that 86% of all consumer information has been compromised through spam emails and data breaches.
Prevention is better than a cure, and knowledge is power, so let’s take a look at the three biggest consumer banking scams doing the rounds right now:
- Tax and SARS Scams – As it is tax season, customers are being approached by fraudsters for their details, promising tax refunds in return.
- Account detail changes – Syndicates are hacking emails and forwarding customers invoices or letters informing them of account detail changes. “Customers must always contact their known third parties to confirm these email instructions,” said Janse van Rensburg.
- Social engineering – Customers are contacted via Phishing, Vishing, and SMSishing to obtain customer “keys to the safe.” Janse van Rensburg advises that users do not click on links in emails or SMSes, nor should they provide personal details over these communication platforms.
Make a note of those three, and if you have parents who are still figuring out this whole email thing in their later years, maybe have a chat.
You should also be aware of the following:
“Clients are being interfered with at ATMs, where they have their cards stolen and they compromise their PINs as they believe the ATM has retained their cards.”
And this, if you’re a business owner:
SABRIC also recently warned South Africans about a scam affecting companies known as “Business Email Compromise.”
The scam involves criminals impersonating high-ranking company staff and convincing junior employees to make payments to specific beneficiaries.
By the time the employee realises they have been scammed, it is too late – as these criminals use bank accounts belonging to money mules.
There are a few preventative measures that you can take to protect yourself.
- Keep your online ID and PIN private. It’s best not to write those details down, so pick something that you’ll remember.
- If your bank emails you requesting your personal details, or if they phone you asking for your pin and password or personal details, it’s probably a scam. Contact your bank directly to alert them of this and whatever you do, don’t give out your details.
- Don’t open emails from unknown sources and always check the email address. Delete them immediately.
- Never accept help from anyone who isn’t a verifiable bank official at the ATM.
- Businesses should never list their main email address publicly or online. Rather use a separate email address for the internet which is not linked to your personal or business email account.
- Businesses should question and verify all changes to email addresses from clients. Any urgent payments instructions should be questioned and telephonically verified.
- Any requests for a change in beneficiary account details should be verified by contacting the sender using normal, legitimate historically sound contact details.
And remember, ‘1234’ might be an easy pin to remember, but it’s also an easy one to steal.
Be smart, stay informed, and if a Nigerian prince wants to transfer money into your account, delete that email immediately.
[source:mybroadband]
