R97,000 SIM swap scam: MTN denies liability
MTN has denied liability for losses that result from illegal SIM swaps. This comes after Moneyweb reported that a weakness in MTN’s security had allowed fraudsters to plunder the bank account of one of its clients.
Illegal SIM swaps allow fraudsters to receive one-time pins (OTPs), which are sent to bank clients when they are transacting online. Even if the fraudsters have a client’s login and password, they will still need the OTP in order to transfer money out of the account.
Earlier this month, Moneyweb reported on the case of Eugene Malan, who lost R97,000 from his Absa bank accounts after an illegal SIM swap was done on his cell number.
The SIM swap was done in an MTN branch in Vereeniging, called Phigerton T/A Sel & Satellite.
It seems that illegal SIM swaps are not unusual for this particular branch.
“My wife phoned the branch in Vereeniging where the fraud took place. There she found out that it was an illegal SIM swap and no documents were presented,” said Malan.
The agent who supposedly did the swap told my wife directly that she has to change her login detail on their systems on a very regular basis as there were 30 illegal SIM swaps from the beginning of February using her name and login details. It always takes place after hours. She is convinced that it’s an inside job or hackers.”
This raises the question: If so many SIM swaps were taking place at the Phigerton branch, why didn’t MTN act sooner?
One Mybroadband user writes: “How the agent’s account has not been suspended and a security tech sent out to the shop is beyond comprehension. Should have been done after the first illegal SIM swap, nevermind thirty!”
MTN has failed to respond to Moneyweb’s questions about this apparent weakness in its systems.
Eddie Moyce
However, MTN’s “chief customer experience officer”, Eddie Moyce has denied MTN is liable for SIM-swap losses.
Says Moyce: “Occasionally, MTN, just like other mobile network operators in the telecommunications industry, is faced with SIM-Swap fraud. MTN is doing its best, alone and in conjunction with the SAPS, to investigate such fraud. MTN is also continuously beefing up its security systems to pro-actively prevent such fraud from occurring.
“With regard to fraud that is committed on customers’ bank accounts, there seems to be a misplaced belief that mobile network operators are liable. Please note, in this regard, that the mobile network operators are not liable.”
“This is based on the fact that in order to commit a fraud on a customer’s bank account a fraudster must have a customer’s bank card/account number, Internet Banking PIN and password. Our courts have already held that a SIM-Swap does not in itself enable a fraudster to commit fraud on a customer’s bank account.”
In the meantime, Moneyweb has heard of other MTN/Absa customers who have suffered similar losses to Malan. A post on the Mybroadband forum tells the story of a client who lost R245,000.
A reader, Mr D, wrote to Moneyweb to say his business was robbed of R200,000 in April last year. The SIM swap was also done at an MTN branch in Vereeniging called AZ Music. The money was distributed to 26 different Capitec accounts.
Another reader, Ms P, also suffered a loss in April last year. She says: “The same thing happened to me in April last year where R62,500 (of which the majority of the funds was an overdraft facility) was removed from my ABSA account.”
“Since then I have had five additional fraudulent SIM swops done on my number, one where a person was arrested. I have tried to get the documentation of these SIM swops from MTN, and details on the case where a woman was arrested, but my requests fall on deaf ears. They do not even have the decency to respond to my calls and mail. I have also been unable to cancel my contract with them. Fortunately my contract expires this week.”
Source: Moneyweb
Loading ...