Card fraud tops financial crimes, says bank


THERE are more sophisticated ways of card fraud as a result of technology and counterfeit fraud accounts for 38 per cent of financial crimes  in Zambia which can be fought by banks and vigilant customers, says First National Bank (FNB) head of enterprise risk Marko Ndumba.

Mr Ndumba said there were more sophisticated ways of fraud which had come  about due to technology and that there was need to educate the public on the risks when using debit cards.

He was speaking at the official launch of the FNB and VISA card security week in Lusaka.

“It is important to educate the public on the risks and fraud that can occur when using debit cards.

“We have seen that trends in more developed countries are coming into Zambia and we have more sophisticated schemes, the most common card fraud in Zambia is counterfeit fraud,” he said.

Mr Ndumba explained that criminals used cameras at Automated Teller Machines (ATMs) to create new pins for debit cards.

He cautioned the general public to always use ATMs they were familiar with to avoid being victims.

“Always treat your card like you treat cash, never give your cards to strangers for help at an ATM and do not share your pin numbers.

‘‘The public must always be alert for skimming,” he said.

Mr Ndumba said FNB had put up measures to combat fraud in Zambia which included analysing software that highlighted potential fraud and triggered transaction verification.

He said FNB had received complaints from clients

concerning card fraud because it was not immune from it.

Mr Ndumba however said FNB had recorded a decline in card fraud due to measures put in place to combat it.

And FND chief executive officer Johan Maree said people were scared of what could happen to their money and that was why FNB launched the card security week.

He said the bank wanted to be seen as a ‘‘thought leader’’ on educating the public on card fraud.

“As FNB, we would like to be seen as thought leaders on this topic and that is good for us as a brand and we are able to share knowledge by doing this for many years,” he said.

Meanwhile, Zambia VISA country manager Salome Makau said there must be a deliberate effort to prevent fraud and protect consumers.

Ms Makau explained that criminals had moved from petty stealing to sophisticated ways which was card fraud.

“There are new players in the industry, new products and new stakeholders with new risks,” she said.

She said VISA was closely working with the judiciary and Interpol in Zambia to combat card fraud.

Categorized | Business

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