CNP Credit Card Fraud Surges in South Africa
Dec. 8, 2011
Credit card fraud in South Africa increased by just over half this year, and fraudulent CNP transactions are gaining momentum in the country. The South African Banking Risk Information Centre (Sabric) said the banking sector’s loss from credit card fraud rose 53 percent for the fiscal year ending September 2011. Banks reported losses due to card fraud were R403.15 million ($50.28 million), an increase from last year’s R263.8 million ($32.89 million). CNP fraud was up 77 percent in 2011 from a year earlier and is now the second most prevalent form of fraud in South Africa after counterfeited cards. Banks reported CNP losses of R142.8 million ($17.81) this year, up from R80.9 million ($10.09 million). Sabric GM of commercial crime Susan Potgieter said card-not-present fraud is growing, although this is off a low base. She explains that, as shoppers move online, criminals are following them. Sabric noted that with the rollout of Chip and PIN nearing its completion in South Africa, it is expected that fraud in South Africa will follow the same trend as in other EMV compliant countries, recording a reduction in all credit card fraud categories except CNP. The increase in losses associated with CNP is clear evidence that South African credit card fraud trends are following international trends.