Capitec to refund 25,000 customers after R99 debit fraud hits South Africa’s banks

Solarion

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Nov 14, 2012
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Thousands of banking customers have raised concerns about fraudulent debit orders.

Its severity was highlighted in a Moneyweb article which stated that a number of customers had been hit by a ‘mysterious R99 debit order’.

The report estimated that as many as 750,000 fraudulent debit orders may have been implemented across the country’s five major banks – totalling R74 million.

Speaking to BusinessTech, Francois Viviers, executive of marketing and communications at Capitec, said that the occurrence of fraudulent debit orders has been a pain point for all banking clients and a great concern to the bank for some time.

“Fraudulent debit order originators typically submit debit orders for less than R99 as this is normally below the SMS notification threshold and therefore does not attract as much attention,” he said.
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supersunbird

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What are the other banks doing?
If you read the MoneyWeb article from 7 December:

‘So suspicious’
A source at a big bank (not Standard Bank), who spoke on condition of anonymity, says the Nconnups debit orders were considered so suspicious that the bank took a decision to protect its clients by reversing all of them, regardless of whether they were disputed or not. This amounted to over 150 000 debit orders.
 

Solarion

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And if they debit order doesn't arouse suspicion, the user wouldn't think to dispute or challenge it via their banking app. With Capitec's App you have the option to dispute/block a debit order prior to it actually going off. Assuming you get the notification of course!

Not sure about other banks. This was a very devious scam this and I'd love to know who was behind it.
 
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