Credit card fraud booms in SA - iol.co.za – 19 Jun 2008

Consumers are losing millions of rand every year as credit card fraud skyrocketed in South Africa over the past three years, the SA Banking Risk Information Centre (SABRIC) said on Thursday.

Head of Sabric's Commercial Crime branch, Susan Potgieter, was speaking at a media briefing in Durban.

She said annual comparisons had revealed a drastic increase as criminals had been "tricking weak consumers".

In the 2005/2006 financial year, she said, the crime had gone up by 46 percent.

This had increased in the 2006/2007 financial year to 97 percent. From last year up until present, it had gone up by another 57 percent.

Potgieter said it the first five months of this year, statistics showed the crime was most prevalent in Gauteng.
"Gauteng was at 46,7 percent, the Western Cape was at 19 percent and KwaZulu-Natal was at 17,2 percent," she said.

She said the trend had changed since last year.

"Groceries stores were the most targeted last year and this year it's liquor stores that are at the top of the list."

Captain Louis Helberg of the Commercial Crime Unit in Durban said a credit card syndicate had been using card skimming devices to defraud scores of people at ATM machines, restaurants and casinos.

He said the device was being imported, particularly from China, and could be bought easily over the internet.

The black device - which is about the size of cigarette lighter - copies data from the magnetic strip on the back of bank cards and each device can be used to copy about 2 000 cards.

"It's an offence just to be in possession of this device and therefore we want people to be aware of it," he said.

Potgieter said one can spend up to about five years in prison for just possessing the device.

Helberg said they continued to make arrests but said the crime still grew.

The latest arrest was made last week at Mount Edgecombe.

Potgieter said: "The crime has evolved over the years and criminals are relying on consumer weakness and that's why we want to educate people using cards.

"People must be smart and alert at all times so criminals can stop abusing the commercial space." – Sapa