ConsumerTalk with Wendy Knowler

Elderly people prime targets in spiking credit card fraud, banking ombud warns

The Ombudsman for Banking Services has seen an alarming spike in credit card fraud since January this year, in particular aimed at clients over 60.

Banking Ombud Reana Steyn says the the number of credit card fraud complaints has risen from 12% to 19% in just three months.

If complaints continue to rise at this rate, credit card fraud may soon overtake internet banking fraud at the top of the case list.

According to the ombud, 58% of the bank clients who complained about falling victim to credit card fraud in the past three months were older than 61 and 11% older than 80.

Most of the fraudulent transactions are conducted via online shopping and clients with high credit limits are more vulnerable, Steyn explains.

Commonly, fraudsters call clients posing as banking officials who are trying to intercept attempted fraud.

In most cases, the criminals already have the consumer's credit card number and other details, making them appear more credible to their targets.

The fraudster claims to be a bank employee and asks the client for confirmation of their One Time Pin (OTP), supposedly to prevent fraud from happening.

It sounds all very credible. The consumer reads out this One Time Pin (OTP) and this is all the fraudster needs to proceed with the online transaction.

Reana Steyn - Ombudsman for Banking Services

In other scenarios, the fraudster poses as a banking official who wants to help the client claim supposed rewards and convert them into cash.

The fraudsters are very knowledgeable about the banks. They know the lingo and even the background noises are convincing. It's a sophisticated scheme.

Reana Steyn - Ombudsman for Banking Services

Meanwhile, consumer journalist Wendy Knowler has warned clients to never share personal and confidential information with strangers over the phone.

Banks will never ask you to confirm your confidential information over the phone. Don't ever disclose.

Reana Steyn - Ombudsman for Banking Services

Knowler urges consumers to immediately contact their bank once they notice any irregular banking activity.

Listen to the entire ConsumerTalk discussion on The Pippa Hudson Show:

Every Wednesday, on The Pippa Hudson Show, consumer expert Wendy Knowler provides useful insights and tips on how to make the most of your buying power.

For more stories visit the ConsumerTalk feature page.

Got a consumer case you need help resolving?

Email: consumer@knowler.co.za, put Cape Talk in the subject line, followed by the issue e.g. cellphone contract dispute


This article first appeared on CapeTalk : Elderly people prime targets in spiking credit card fraud, banking ombud warns


Recommended

by NEWSROOM AI
Read More
MTN fee hike could've been executed better, says consumer ombud

MTN fee hike could've been executed better, says consumer ombud

Consumers have spoken out against the decision by MTN to unilaterally increase these fees mid-contract, explains Wendy Knowler.

 'Valid for today only!" - how online retailers pressure customers to spend

'Valid for today only!" - how online retailers pressure customers to spend

Consumer journalist Wendy Knowler shares some of the tactics used to rush consumers into making a deal and how not to fall for it.

Dealerships must pay for cars damaged or stolen in their care, it's the law

Dealerships must pay for cars damaged or stolen in their care, it's the law

Once you hand over your keys to a car dealership, the Consumer Protection Act says that they are liable for anything that happens.

Howler CEO responds to complaints about the new cashless system used at events

Howler CEO responds to complaints about the new cashless system used at events

Some Howler users have complained about the slow refund process, while others claim to have been overcharged at events.

Is your car one of thousands to have been recalled so far this year?

Is your car one of thousands to have been recalled so far this year?

'In South Africa the recall of cars applies to thousands across seven of manufacturers' says Wendy Knowler.

Telkom wouldn't end her contract, then she got scammed by a fake customer agent

Telkom wouldn't end her contract, then she got scammed by a fake customer agent

In a desperate attempt to cancel her contract, this woman reached out to Telkom's social media team and fell victim to ID fraud.

Popular articles
You’re almost certainly – no matter what you believe - crap at investing

You’re almost certainly – no matter what you believe - crap at investing

Data shows that almost everyone sucks at investing, says Warren Ingram. Here's how to avoid shooting yourself in the foot.

How long to keep tax records available for inspection in South Africa

How long to keep tax records available for inspection in South Africa

Should you keep them "forever"? Tax expert Chris Sloane on the requirement to keep tax records available for inspection by Sars.

[WATCH] There will be no place for violence in EFF government - Julius Malema

[WATCH] There will be no place for violence in EFF government - Julius Malema

Leader explains some of the party's election manifesto promises on the Eusebius McKaiser show.

New Ipsos poll shows ANC winning 2019 election, rates Ramaphosa a vote puller

New Ipsos poll shows ANC winning 2019 election, rates Ramaphosa a vote puller

Senior client officer at Ipsos, Mari Harris says President Cyril Ramaphosa's trust index is higher than other leaders.

Young love prevails: The Terry-Ann and Dumisa Mathabathe love story

Young love prevails: The Terry-Ann and Dumisa Mathabathe love story

In this episode, Terry-Ann and Dumisa Mathabathe share their love story with Joanne Joseph.