An FNB client was recently robbed of R157,000 in a brazen case of identity theft, Times Live reports.
Ivan Kistnasami was the victim of a criminal who exploited a lack of proper identity verification procedures by courier companies to defraud the FNB client.
The fraudster applied for a Discovery credit card in Kistnasami’s name and ordered it delivered to his address in Howick, KwaZulu-Natal.
The courier company used by FNB delivered the card and PIN to to the fraudster, and the criminal immediately began transferring available funds from the client’s bank accounts.
According to Kistnasami, the courier company accepted a fraudulent ID with a picture of someone else as proof of identity – along with a tampered proof of address document.
The documents presented for verification were clearly fraudulent stated the report, with the photo in the fake ID depicting a black male, which Kistnasami is not.
The fraudster racked up R157,000 worth of debt soon after gaining access to Kistnasami’s account, and FNB said the client has now been refunded for the stolen amount.
FNB offers customers free delivery for new credit cards and discourages them from collecting their card at physical branches by charging a R200 collection fee.
This policy aims to reduce the number of clients transacting at its branches, the bank told Times Live.
The bank said the investigation into the matter is still ongoing, and did not provide any comment on the verification of identity by courier company employees.
While this form of physical identity theft was effective, users must also beware of digital banking fraud.
This can occur when a user’s online banking account details are compromised in a phishing attack or data breach.
While most banks use two-factor authentication, the widespread use of SMS-based authentication can make it easy for attackers to commit SIM-swop fraud and receive the customer’s one-time-PIN (OTP).
Statistics published by SABRIC show that the number of SIM-swop fraud incidents have been increasing dramatically in South Africa, doubling from 2017 to 2018.