Fraudsters are wily fellas. What is the banking fraud you need to be aware of lately?
Where there is treasure, there are chances of a thief nearby. It's not to be pessimistic about the times we find ourselves in - but it is always wise to be aware of the latest tricks and schemes.
ATM Fraud
This is probably the cash cow of fraudsters on foot. It originated at the inception of the Automated Teller Machine. Various ways of ATM-related theft and fraud exists. The most prominent lately is due to skimming devices. The gap where the card is to be inserted should not have any devices protruding from it. Skimming devices are used to extract the information from a Debit Card whereby a not so innocent bystander will try to record your PIN. Fraudsters have been known to use their own strategically placed cameras to capture the PINs of customers. Never trust any unnecessary help. If you are in need of assistance, make sure to ask banking staff to help you. To curb the likelihood of tampered ATM’s, only use ATM’s at bank branches. Be advised some ATM’s have clear plastic coverings over the card insertion gaps to repel the application of skimming devices.
Change of bank details.
Fraudsters hack into the emails of legitimate individuals or businesses. They then inform the targets of a “change” in banking details. The new bank account is under the fraudster’s control. The fraudster then steers payments made unto the parties with hacked email accounts into the fraudulent bank account. Needless to say, as soon as the money is transferred, the crook disappears. Contact the party you need to pay, without using emails, before you change the details of your payments to be made. Make extra sure you are paying the right people when a change in banking details is made.
Holiday Reservations
It can be a very tricky situation to book just the right cottage or house for your dream holiday. This is a unique situation as you are almost obliged to book a place without ever seeing it until the day of arrival. Fraudsters make use of online advertising to create fake advertisements for cottages and houses for rent or for sale. They create a believable back story and draw you in with correspondence via email and telephone. Don’t expect any contact after you’ve “booked” your stay and paid your deposit. Unfortunately, you’ll only realize your demise when you rock up at your destination with no legitimate claim to stay there. Fraudsters can use one house or cottage to scam numerous families out of a deposit for a holiday home. Use legitimate agencies to make bookings at places you’ve never been to. Do your homework before you make any bookings.
Fraudulent Debit Orders
Customers who aren’t careful with the handling of their bank details end up handing it over to the wrong people. Debit order fraud is very serious and needs to be stopped as soon as possible. The amounts that are stolen rarely causes the banks to notice it until customers lodge complaints. Then the cost to stop the fraud often exceeds the monthly total of fraudulent expenses. Amounts between R99.90 and R19 commonly get deducted from your accounts without your knowing. Many customers aren’t aware of it because they don’t receive texts notifying the transactions as the amount is under the R100 threshold. Most banks only send text notifications with transactions over R100. Be alert and go through your bank statements on a regular basis to stop these crooks before they bleed you dry! Especially enquire at your bank when you see names like Digi Cash, Gigima, and ZwiZwe on your statements.
Where there is a will, there is a way. The appetite of the crook will never be satisfied. Be alert and anticipate when you are dealing with high-risk situations. Rather avoid a transaction if there is a lack of information and poor correspondence.
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