Cyber fraud syndicate busted
A suspect has been arrested following a massive investigation by Standard Bank and law enforcement agencies into internet banking fraud, allegedly perpetrated at internet cafes in Johannesburg’s northern suburbs, Pretoria, Cape Town and various local airports.
Searches were carried out late last week on a Cape Town business and two private homes.
Computer equipment and hardware was confiscated and are being examined by investigators.
Places searched
Several internet cafes and other public places that offer internet services were also searched. Computer spyware was found attached to 13 public computers.
Spyware is used to capture internet banking customers’ banking credentials.
Standard Bank has established that at least 50 customers from various local and international banks, who did their internet banking at the internet cafes, have had their banking accounts compromised.
Tourists affected
Several American, Canadian and English tourists visiting South Africa have been affected. Standard Bank has been in contact with their banks to inform them of the compromise.
Standard Bank investigations and actions have resulted in no Standard Bank customers suffering any loss. The information of compromised customers has been shared with the other banks.
Herman Singh, director technology engineering at Standard Bank said: "We have been working very closely with law enforcement agencies to crack this syndicate as we have a zero tolerance policy towards fraud.
"We are committed to upholding the integrity and privacy of all our customers’ banking information."
Avoid public computers
He warned customers to avoid using publicly accessible computer and internet terminals, such as internet cafes, when doing their internet banking.
"The risk is just too great. Without adopting the recommended security measures customers expose themselves to having the credentials compromised. There is little the bank can do to protect its customers in these types of environments. We have always advised our customers to only do their banking from secure computers which have all the necessary security features such as anti virus software and security firewalls."
Singh said Standard Bank has introduced one-time password, which is free, to protect its customers from criminals wanting to access their accounts.
One-time password is an additional layer of authentication on Internet banking which allows customers to authorise certain activities on their account.
One-time password
With one-time password customers receive an SMS, or e-mail, depending on which they choose when they add or amend beneficiaries, make once-off payments or amend their internet banking profile. This notification contains a password, which customers need to key in to authorise the transaction.
"One-time password makes transacting on the internet extremely safe.
"Customers have already demonstrated their willingness to adopt more secure processes with more than 180 000 or over a third of our internet banking customers already adopting one- time password.
"This secure system adequately protects our customers from these types of attacks. The service has been mandatory for all new internet banking customers and will become mandatory for all existing customers from October 2006," says Singh.
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