CNP Fraud in South Africa on the Rise
Nov. 27, 2012
New research on payment-card fraud in South Africa mirrors a trend seen elsewhere in countries that have migrated to Chip & PIN technology: overall losses due to card fraud are down, but fraud in card-not-present environments has increased. The South African Banking Risk Information Center (SABRIC) said gross losses decreased 18 percent on credit-card purchases and 7 percent on debit purchases from 2011 to 2012. CNP fraud, on the other hand, rose 16 percent year over year and accounts for a bit more than half (51 percent) of all credit card fraud losses.
“CNP fraud losses have been on the rise steadily over the past few years,” Kalyani Pillay, CEO of SABRIC, said. “This is not an unusual trend as a similar pattern is witnessed in most EMV-compliant countries such as the United Kingdom and Australia. Criminals tend to use stolen card information to perform online purchases as they are deterred by Chip & PIN technology.”