Vodacom Fraud: Unauthorised add-on contracts

morkhans

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My SO got a nice surprise last night. It started with 3 new debit orders from Vodacom suddenly going off her account. She then logged on to check her account only to discover that her balance was sitting at R45000. Looking at the detail she found that 5 new SIM cards had been added to her account, each of these presumably some new contract. Looking though the itemised billing it appears as if shortly after taking out the add-on contracts the criminal scum then applied for early termination which resulted in the full outstanding contract being billing which accounts for the large bill. I can only assume they request early termination in order to clear the handset of being blacklisted somehow.

She then called the call centre. The agent must have asked about 5 or 6 different security questions (oh the irony) before she could be helped. It took ages for them to actually understand what was going on and she kept have to say, no I didn't request these add-on contracts. The agent couldn't tell how or when these contracts had been added. Eventually she was instructed to go to the police station and complete an affidavit and send that through to the fraud department. She then asked if her account could be put on hold pending submission of the documentation and was told no, that couldn't be done. She then called her bank and stopped her account.

I cannot fathom how it is possible that there no checks or notifications in this entire process
1) Why is the primary account number not called to confirm the additional contracts?
2) Why is no SMS notice sent to the primary account upon activation of the additional contracts?
3) Surely no-one in their right mind opens 5 additional accounts and then shortly thereafter requests early termination (we all know Vodacom charge you the full amount, so it's actually not worth terminating early). Why does this event not raise any flags in the fraud department?
4) Where are the credit checks? How does someone on a sub-R500/pm account suddenly qualify for R45000 worth of credit?
5) If there is fraud on your bank account, you call, it gets stopped, they send you a simple form to fill in which you can send back. Vodacom certainly don't make things easy for their customers.
6) Surely it's for Vodacom to prove that she opened these additional accounts? She is now liable for this account while fraud do their thing.

If I was a betting man, my money would be on inside job. No checks and balances, no notifications, no sanity checks on early termination.

Not sure if things are any better at any of the other providers, but a big FU to Vodacom and your lack of controls.
 
Send through whatever proof /details to one of the moderators to put an article. It's the only way they'll think to put in new processes.
 
Update: Finally received a reference number from the fraud department (took 3 days). You don't even get an automated receipt of mail, so was wondering if it had all just gone to /dev/null.

No word yet on time to resolve.
 
Vodacom have removed the fraudulently added contracts and reversed the charges.

Of course there is no comment on any of the questions as to how this was able to happen in the first place.
 
Can only assume the lack of proper checks and balances in the tack on of these additional contracts were done with the complicit of internal staff. Someones at Vodacom have obviously identified loopholes and are exploiting them before they are plugged, they probably know it takes a while to plug such shortcomings.
 
It certainly does smell like someone on the inside had a hand in this.
 
Always Vodacom and MTN...
Do they still offer the banks OTP via SMS and blame them for choosing a product with poor security?
 
Just a FYI. My fraud case was logged with them last year August/September. There were three accounts loaded on to my account and the users of the accounts weren't shy to abuse it at all. I followed their procedure and only at the end of November did i get any feedback apart from "they are investigating". I reached tipping point with them in December that I cancelled my contracts and moved to prepaid. Thought everything was sorted out after the manager confirmed I don't owe Vodacom a single cent. Now they started chasing me again for money that according to the recording I have and they must also have I don't owe them. They really seem to have a serious problem with fraud and internal politics that cause this process to dragout the way it has. I doubt this will ever get resolved until Vodacom admits they are doing their customers wrong and resolve the problems they created.
 
Thanks for the article Jan!

This is the kicker for me:
Vodacom did not answer questions on why subscribers are not alerted when new contracts are added to their accounts.

Such a simple thing to implement, but they can't even bother to comment on it.

On how fraudsters circumvent the relevant credit checks, the company said that contracts without devices do not have strict credit requirements.
...and how do the fraudsters know this I wonder?
 
Why would a contract with no device require less credit checks? Part of the contract is the bill allowance ie: spend limit ( or credit limit in other words ). That is the same with or without a device, they should be hammered by the FAIS ombudsman for failure to comply.
 
Why would a contract with no device require less credit checks? Part of the contract is the bill allowance ie: spend limit ( or credit limit in other words ). That is the same with or without a device, they should be hammered by the FAIS ombudsman for failure to comply.

Exactly. They are probably more prepared to lose out when a device hasn't been funded in the loop... they can just stop your service.
 
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