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Credit card fraud booms
Thu, 19 Jun 2008 12:00
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 2000 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."