"Criminals will always be on the lookout for gaps and weaknesses in order to defraud victims. Fortunately, SABRIC’s collaborative model, as well as the robust risk mitigation measures deployed by its members, position the industry perfectly to tackle card fraud," explains Pillay.According to the report, card fraud is more prevalent in Gauteng, Western Cape and the Kwa-Zulu Natal. Banks have increased security measures and all new bank cards are equipped with a unique chip. This 'Chip and Pin' technology has curbed counterfeit debit card fraud by 35%, however credit card fraud remained the same at 26.4%. Although there has been a significant decrease in fraud since the chip, stolen cards have increased. This has been criminals' alternatives and it has proven to be successful. Criminals will stand behind ATM users and watch them put in their pin number. Thereafter, they will distract them and take the card. This method has accounted for 56.2% of all card frauds in 2016.
According to the report,"industry statistics indicate that credit card related Card Not Present (CNP) fraud increased by 18, 9% from the previous year and accounts for 66.8% of the losses relating to SA issued credit cards. CNP debit card fraud increased by 4.6% which can be attributed to a wider acceptance of debit cards by online vendors."This form of fraud takes place when criminals are able to gain access to card and user details online. This could be as a result of lack of security measures and unsafe websites.