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Significant decline in card cloning

Fred van der Westhuizen, director of Visa Risk services in Sub-Saharan Africa

There has been a significant drop in the number of cases of card cloning from its peak in 2010. Card cloning has seen a sharp drop of more than 50% in 2012 and steady declines in 2013 and 2014, according to FNB Namibia.

Despite a noticable drop, FNB said that, skimming and cloning will remain the big threats to customers during 2015 as in January there were again a small increase in this criminal activity.
Presenting the trends in this crime this week was a first for a local bank and a global payments technology company when FNB and Visa joined forces to offer card fraud prevention tips and insights to consumers at what will become an annual Card Security media briefing in Windhoek.
Said Ingrid Katjiukua, Manager of Forensics, FNB Namibia, “card fraud is an ongoing concern for the bank and electronic payment companies such as Visa. While Namibia is not a primary target country for card fraudsters, the bank is detecting fraud incidents that could be prevented by consumer education.”
Katjiukua highligted that primarily, banks and consumers are at risk of card cloning which includes a series of events namely card skimming, PIN interception and card cloning. Other types of card fraud such as illegal use of card details seldom occur. According to FNB Namibia the decline in cases of card cloning has been attributed to its collaboration with Visa with its introduction of chip card technology. Fred van der Westhuizen, director of Visa Risk Services in Sub-Saharan Africa said, “as opposed to magnetic stripe technology, a chip is difficult to crack. An important aspect of a Europay, MasterCard, and Visa (EMV) transaction is its use of dynamic data. Each transaction carries a unique ‘stamp’, which prevents the transaction data from being fraudulently reused, even if the data or the card is stolen. This saves banks and consumers from losing money through fraud.”
Currently FNB Namibia is actively driving greater card usage and cashless banking with their no-charge per transaction pricing. FNB further implements behind-the-scenes security measures on customer accounts and has investigation teams in both its credit and debit card divisions to support customers. “We urge everyone to increase their awareness of the different types of card fraud and to take precaution when making payments in foreign or familiar surroundings. A zero-tolerance stance to all types of card fraud is a key commitment for both FNB and Visa. Both companies remain committed to seeking solutions that protect consumers and retailers” said Katjiukua.

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