CREDIT CARD FRAUD - ARE YOU ASSISTING CRIMINALS TO STEAL?

Credit card fraud is rife, which is why banks have been warning their clients to be vigilant during every transaction, whether at the fuel station, the ATM or a restaurant. But while those transactions are within your power, what if you’re the victim of a burglary, your card is taken and money is withdrawn before you even know about it?

Mike Thurgood, of Milnerton, and his wife had a break-in during the early hours of January 23. The couple were none the wiser, though, because the burglar simply helped himself to his wife’s handbag and a digital camera while they were sleeping, then disappeared into the night.

Before 8am, R2 000 had been withdrawn from her accounts.

Thurgood’s correspondence to his wife’s bank, FNB, reads: “Thank you for your unsigned response to the card fraud which we reported dated February 02. I wish to draw your attention to the second paragraph of your letter, which I quote in full as follows: ‘We have noted that the transaction/s occurred prior to you cancelling your card on 23rd January 2016 at 08:54:57. Due to the card not being cancelled timeously, the bank was unable to mitigate the loss on the account.’”

Such a response would raise anyone’s hackles because the bank appeared to brush off his claim on the basis that she had failed to notify them of it within a reasonable time frame.

“Please allow me to acquaint you with the actual facts: some time after midnight on January 23, someone broke into our bedroom through a window which my wife had left slightly ajar because of the high overnight temperature… We were both asleep, and were not woken up by the intruder. Please note that we do not use any sleeping pills.

“The intruder stole my wife’s handbag, which had been left, as usual, on the floor alongside her side of our double bed, adjacent to the window. Together with the handbag, the intruder stole a digital camera on a chest of drawers. Nothing else was stolen.

“The handbag contained all my wife’s debit, credit, and other cards, and the PIN numbers were separate in the handbag, in a secret compartment.

“The intruder then left through the same window, all this not waking either of us up…

“We woke up at our usual time, at around 7am on the Saturday. It was not until around 8am that my wife wanted to have a look for something in her handbag, to find that it wasn’t where she had left it the previous evening on the floor alongside her. (Then we) realised an intruder had got into our bedroom and stolen these two items.

“We have one cellphone, my wife’s, which she turns off overnight. This was in a drawer and not in the handbag. When we realised that there had been an intruder, she turned on her phone, and a little later an SMS came through advising that her credit card had been used to withdraw R2 000 at an ATM in the township of Dunoon, about 5km north of Milnerton, at 6.34am.

“Luckily this was the daily withdrawal limit that my wife had set.

“My wife immediately called to cancel all her debit and credit cards. In view of the circumstances, it would be appreciated if you would explain to me, in detail and in simple language, how it would have been possible to report the loss of the cards when we were asleep, and which were actually used around three hours afterwards while we were still asleep – that is, before we were even aware that they had been stolen.

“And if the time interval of two-and-a-half hours between their use and my wife receiving the SMS about their use is not adequately timeous to start the cancellation procedure, please explain, again in simple language, how you could possibly envisage anything more timeous.”

It’s an unfortunate case because if Mrs Thurgood hadn’t left her PIN in her handbag – even in that special “secret compartment” of hers – the burglar would not have been able to draw the money from her account.

And had her phone been on, she might have benefited from the withdrawal notifications her bank (not all) would have sent out.

At first, it appeared as though the bank was being unfair, until Charlaine Albertyn, the head of fraud at FNB, came back to me with the following response: “The customer’s claim was not refuted based on the fact that the card wasn’t cancelled timeously; the claim was refuted based on the fact that her card was stolen and the PIN number used in order to execute the ATM withdrawal.

“As we also explained in the liability letter sent to the customer, our Terms and Conditions clearly stipulate that a customer will be held liable if the PIN number was compromised.

“Furthermore, the customer admitted to us during the investigation that the PIN was kept with the card in her handbag, thus we refuted her claim.”

And that was the clincher: if the PIN wasn’t in the bag, the story would have ended very differently.

“If it was not a PIN-driven transaction, but merely a swiped or dipped signature, FNB would have refunded the customer’s account.”

The Thurgoods were lucky – they had left their window open to let in some fresh air and a burglar took advantage.

It could have ended far worse than losing R2 000, but it’s not small change by anyone’s estimation.

For those who have ever forgotten to sign their store cards, used easy PINs, saved their passwords on their phones and other such security breaches, it’s a lesson: far too many people don’t realise how easily it is to access your information.

And once a crook has your PIN or other details, they can pretty much go to town at your expense.

Wise up. Here's how!

It’s your secret: a PIN (personal identity number) is the key to accessing any account and should be kept safe and secret at all times. Do not write “PIN” on the back of the card or keep the card and PIN together, or store the PIN on your cellphone. Never disclose your PIN number to anyone – not even relatives, friends or a bank official. Always cover your one hand with the other while keying in the PIN and stand close to the ATM using your body as a shield to protect your card and PIN. And never accept help from strangers at ATMs.

Complexity is key: do not select a PIN that is easily identifiable, ie same as your date of birth or ID number. Only insert the card and PIN when the ATM prompts you to do so and press the CANCEL button for safety if the screen is unfamiliar. Don’t allow anyone to call you back to the ATM after transacting.

Card security, general safety: never let your card out of your sight when transacting. Ensure that you always get your own card back after transacting at an ATM or merchant. Check your bank statement and report fraudulent activity immediately. If you do so within 40 days, you can have unauthorised debits reversed without charge. After that, an investigation needs to take place.

Stay informed: register for inContact, FNB’s free instant SMS service, or your bank's equivalent, that notifies you every time your card is swiped or when cash is withdrawn from your account. Report any suspicious transactions immediately.

Put a cap in place: control your exposure in terms of daily ATM and purchase limits by lowering your daily limit, should it have been set at an unrealistically high limit.

What to do if your card has been stolen: cancel your card immediately by phoning the card cancellations call centre (numbers on ATMs).

VIA - iol.co.za