Nearly 5% of all attempted digital transactions in first half of 2024 suspected to be fraudulent

Daniel Puchert

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Major warning for people who bank and shop online in South Africa

In 2024, digital fraud incidents grew at an alarming rate in South Africa, with phishing, online shopping scams, and mobile malware being some of the biggest online threats to consumers and businesses in the country.

Incidents of banking app and SIM swap fraud have also risen significantly.
 
A friend's husband who is in a wheelchair and consequently not very mobile (he has MS) took his unworking Samsung phone to a Bangladeshi gent who repairs phones and asked me to collect it for him

When I walked into the shop, there were 2 guys looking at various credit cards spread out on the counter. They did not seem to mind me looking. The cards had different names on them. The shopkeeper took a black Capitec card, entered R20 on a Yoco machine and touched the card on the machine. Almost instantly, his phone showed "Payment Approved". The shopkeeper gave one of the guys a bundle of R100 notes, they gathered up the other 5 or 6 cards and walked out

I had figured by then that this Capitec card was either stolen or fake. Quite brazen about it.

He charged R550 to replace a battery and the glass cover on this phone
 
According to data from TransUnion, nearly 5% of all attempted digital transactions originating in South Africa in 2024’s first half were suspected to be fraudulent.

TransUnion, Experian and others enable identity theft and fraud by selling our personal information without our consent.
 
Major warning for people who bank and shop online in South Africa

In 2024, digital fraud incidents grew at an alarming rate in South Africa, with phishing, online shopping scams, and mobile malware being some of the biggest online threats to consumers and businesses in the country.

Incidents of banking app and SIM swap fraud have also risen significantly.

TransUnion is sleeping at the wheel and get our personal data stolen, then is surprised at the rise of digital fraud?
 
TransUnion, Experian and others enable identity theft and fraud by selling our personal information without our consent.
"selling" is probably correct to refer to the following:

TransUnion & Experian both hacked and private data of ZA citizens sold - hence why we seeing the increased fraud.
Where TransUnion & Experian ever given fines by regulator?
 
A friend's husband who is in a wheelchair and consequently not very mobile (he has MS) took his unworking Samsung phone to a Bangladeshi gent who repairs phones and asked me to collect it for him

When I walked into the shop, there were 2 guys looking at various credit cards spread out on the counter. They did not seem to mind me looking. The cards had different names on them. The shopkeeper took a black Capitec card, entered R20 on a Yoco machine and touched the card on the machine. Almost instantly, his phone showed "Payment Approved". The shopkeeper gave one of the guys a bundle of R100 notes, they gathered up the other 5 or 6 cards and walked out

I had figured by then that this Capitec card was either stolen or fake. Quite brazen about it.

He charged R550 to replace a battery and the glass cover on this phone

That's the thing. Lack of ethics and good moral behaviour in many people leads to this. In some countries if you lose your wallet on a train, you will either find it where you lost it and the cash will still be there or you'll find it in the 'lost and found' and the cash will still be there. Of course when it comes to bigger money there are still crooks even in those countries. Still maybe if people had respect for other people and realised that stealing money from accounts is not a victimless crime, things would be happier. But as morals are no longer taught and we have our left wing friends tell us that everyone is good by themselves, we have what we have.
The only solution is more electric fences and more security and those often get breached because they're all vulnerable and when there is a will, there is a way.
 
This week, I became a part of the Experian + Capitec fraud. On the 26th of December, I got a notification from Capitec regarding a pending notification. There was a cellphone number linked to that payment registered on Truecaller as Zama Zama Inn. When one views the comments, over 2,000 South Africans seemed to have experienced the same instance of money leaving their accounts without their approval, knowledge, or consent.
IMG_20241229_113318.jpg
And then another 350, 42, and 57 ZAR left my account as I was on the phone with the agent stopping my card. There is now a "case" open for investigation with an "escalation." That's all the info I have. I have followed up with Capitec via their WhatsApp chat, and what a joke that was. The person speaking to me there asked me constantly, "What do you mean fraudulent activity?" and "What do you mean location the transaction happened?"

This was after I specifically asked for reports stating where these transactions were authorized from. I've been at my family home, not swiping or doing anything online, so surely they must have the MAC address if it was online purchases and a pinpointed location. But they were unable to provide support and answers to any of the questions.

I'm very disappointed in Capitec for not stopping the pending transactions as they were happening while I was on the phone with an agent. For them to say, "We cannot stop a pending transaction," is unacceptable. I'm on the phone—the actual account owner—with you, my bank, the people supposedly keeping my money safe, and I'm not getting support.

If CEO Gerrie Fourie had experienced digital transformation officers like myself—qualified and proactive to manage crisis control—I would have implemented a system where, as a bank, I have technical security officers on standby for instances like this, in order to stop pending payments and reverse funds. The banks have that power, not the current support agents.

My friend in Cape Town, who just worked as a junior clerk, got a position as a support agent at Capitec. He has no financial experience (sorry for stating this, but he told me), and he is in a position to help people like me.

Gerrie Fourie, you should be implementing systems and processes to help Capitec clients safeguard their money. Access via a WhatsApp chat and even a call with inexperienced agents does not instill trust. I'm moving my main source of income to another place.
 
5% of ATTEMPTED digital transactions you say, and its just SUSPECTED to be fraudulent.

What an absolute meaningless thing to say.
 
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