|African Banks Vulnerable and Exposed to ATM Fraud|
|Wednesday, 03 February 2010 13:49|
"It is unclear what the actual financial impact ATM fraud has in Africa, due to the lack of actual reported figures, according to Mr. Johan Barnard Managing Member of Perficio Prosperitas Training Institute in South Africa.
The African banking sector is facing ATM fraud syndicate attacks from both local and foreign origin. With recent media reports from Tanzania where a Bulgarian couple and in Kenya where a Russian national was arrested for suspected ATM fraud, it is clearly illustrated that the East European syndicates are moving into Africa.
The relatively new ATM environment and lack of advanced ATM security knowledge and infrastructure, attracts the syndicates that see Africa as a soft target.
In Kenya we are now noticing variable similarities in ATM fraud cases to some North American scams specifically directed at tourist and experts. In the Kenyan cases however, the scams are directed more at the so called upper or middle class citizens.
The key challenges the banking sector in Africa faces are that of knowledge and understanding of ATM and Card fraud scams. Most banks do what they can to secure ATM and Point of Sale (POS) terminals, however banks can't properly safeguard themselves and their clients if they don't fully understand the various ATM scams and methods used and the risks posed to them and their clients.
"Fraud losses through credit card transactions performed through phone, mail order or online were up generally in Africa, alongside fraud committed with genuinely issued cards that did not reach their recipients, this due to the introduction of the so EMV or chip card.
While there is a decrease in the growth rate of certain card frauds year on year, banks must not become complacent as it is not uncommon for fraudsters to seek new and alternatives avenues to commit their crimes", according to Mr. Barnard.
In December 2009 PPTI and its partner DFR Risk Management based in the UK, a leader in consultation in and investigation of ATM fraud, hosted their first Combating ATM Fraud in Africa training course in Zanzibar.
Mr. Barnard states that the attending banks were amazed by the information supplied and that the banks were equally shocked when they realized how vulnerable and exposed they were.
"It is due to the success achieved and the realisation of the lack of knowledge encountered at the Zanzibar event that PPTI and DFR Risk Management will host a similar event in Nairobi, Kenya in March this year.
We are extending a further service to the attending banks whereby we are offering consulting sessions the week after the event at reduced rates. We wish to assist the banks in effective implementation of the skills and knowledge gained at the event, as these actions are usually very challenging."
Cash Trapping / Transaction Reversal Fraud
Card Trapping / Card Swapping
Card trapping, which had almost disappeared as a significant category of ATM fraud during the time ATM skimming emerged as the modus operandi of choice, is very much...
Cheque Fraud / Fake Deposit / Leaving Transaction Live
ATM Skimming / Skimming / EFTPOS Compromise
ATM skimming remained a popular and profitable crime globally during March. Countries where there...
Ram Raid Attacks / Theft of ATM / Smash-and-Grab / Theft from ATM
A failed theft of an ATM in Australia, never the less caused significant damage to the building. Tasmanian police recovered an ATM from a successful ram raid in Australia after the ATM fell from the vehicle removing it. In Ireland...
The use of explosives, both explosive gas and solid explosives were reported in many countries. The UK, experienced its first known explosive gas attacks in March, including a highly dangerous incident at a petrol station. South Africa continued to face ATM bombing attacks using solid explosives.
Quick Search Strings:
If your company supplies products, services and solutions relevant to ATM fraud and security, and you would like to explore the various advertising and marketing opportunities with ATMsecurity.com, please use the 'contact us form' to request further details:
The above digest is provided by DFR Risk Management, who provide consultancy services advising ATM and self-service terminal deployers and manufacturers, as well as law-enforcement agencies,onhow to manage ATM and self-service terminal fraud and security threats.
ATMsecurity.com is focused on ATM Fraud and ATM Security related issues, providing insight, intelligence and information via ATM security news, the ATM security knowledge centre, ATM monthly digest and ATM security articles.