The last few days of 2015 saw widespread attacks on the accounts of local financial institutions and, by extension, their cardholders. Several local ATMs were targeted by fraudsters leading to the potential compromise of hundreds of cards.
Similarly in July 2016, reports of the seizure of 400 fraudulent ATM cards by local police and the subsequent detaining of the suspects permeated local media and social media outlets. Unfortunately, incidents of this nature are not new or at all rare in T&T, as some may remember another similar attack that occurred in mid-2012.
The Nilson Report placed Global Card Fraud at US$14 billion in 2014, up 19% from 2013. Researchers of financial risks and avid readers can easily recall that, data breaches at merchants and resulting compromised cards, dominated international headlines over the past few years.
There are various instances of popular multinational retail chains publicly announcing data breaches in an attempt to protect affected cardholders. How many T&T cardholders can say they have indeed read an article or heard informally of these breaches? And, in this age of technological advancement and substantial fraud losses, lack of awareness on the cardholder’s behalf can lead to significant losses.
Through the abundance of information present in electronic media, one can surmise that the best way to protect your investment is to become aware of the environment in which your card operates and to be cognisant of the most common methods used by fraudsters throughout the years.
Counterfeit cards
Perhaps the most prevalent form of card fraud is the creation of counterfeit cards. Skimming is the act of using a small device, known as a skimmer, to illegally collect data from the magnetic stripe of a credit or debit card. This information is copied to the magnetic stripe of a blank card, which is then used to conduct purchases at merchants.
Fraudsters have also incorporated the use of pin hole cameras at ATMs in order to capture PIN entry of unsuspecting cardholders.
Lost or stolen cards
This entails the use of cards that are lost or stolen by fraudsters to make purchases.
Spyware and malware
Credit card information can be siphoned off by fraudsters once cardholders fall victim to spyware. The most common examples seek to trick online surfers into following a Web site link or to download and open attachments.
These are just a few of the methods used by fraudsters every year, resulting in thousands of affected cardholders and billions in losses. Although these methods are continuously enhanced due to the ever-evolving technology available to fraudsters, the fact remains that cardholder vigilance in protecting their investments is key in order to reduce the risk of theft and fraud.
How can you protect your investment?
Cards are generally a safe way to pay for goods and services, eliminating the need to visit merchants and transact with large sums of cash. Once the necessary steps are taken to safeguard card information, cardholders are able to experience the full benefit of secure electronic payments. Remember, the first line of defense starts with each cardholder and protection begins with the practice of a few simple acts.
Here are some suggestions:
• Pay attention to your card. It is imperative that cardholders do not let their cards out of their sight while conducting transactions at merchants and receipts are validated prior to confirming the transactions.
• Survey ATMs and safeguard your PIN. The areas within and around ATMs should be thoroughly examined prior to use. Vigilance within the ATM room is just as important as protruding parts, unusual card readers or a strong smell of glue should also raise a ‘red flag’ to cardholders.
• Cardholders should ensure that they are the only person aware of their PIN. When entering your PIN at ATMs, remember to use your free hand and your body to shield the number. This will help to prevent illegal PIN capture, in cases where fraudsters installed a hidden camera or are watching over your shoulder.
• Update firewalls and avoid spam. Browsers should always be set to the highest level of security and firewalls updated regularly. Public Wi-Fi connections should be avoided as much as possible and once an email has been identified as spam, it should be reported and deleted immediately.
• Remember your bank or financial institution will never forward an email requesting your PIN or any other account information.
• Register your travel information. Be sure to notify your financial institution of plans to travel overseas, so that they can contact you in case of emergencies or if any suspicious card transactions are detected.
• Utilise online banking. Develop a culture of vigilance by checking your card account online daily. Daily log-ins will ensure full knowledge of activity so any fraudulent transactions will be easy to identify. Verify stored receipts against transactions reflected on your online account and remember it gets easier the more you do it and after a few days, it will become routine.
How we assist in protecting your investment
Financials intuitions utilise several systems and enforce measures to mitigate card fraud. One such measure is the enforcing of near real time card transaction monitoring. This is used to detect and confirm suspicious activity on the accounts of cardholders as they occur. Financial institutions also ensure that systems are in place to allow 24/7 notification of lost or stolen cards in order to reduce the risk of this fraud.
We are in the information age. Everything you need to know about avoiding card fraud is available at your fingertips. You can also contact your card issuer who will provide necessary advice on safety tips.
Consequentially, how you are informed is not nearly as important as ensuring you receive the information. Take the necessary steps to safeguard your personal details and protect your investment.
Kofi Charles, card fraud officer, electronic distribution channels, Unit Trust Corporation.
