Debit fraud: Here is how SA's big 4 banks are handling it

For bank account holders who have been victims of debit order fraud, banks have heard their concerns and have taken steps to prevent it.

09 November 2018 | Economics

The four major banks – ABSA, Standard Bank, Nedbank and FNB – have partnered with the Payments Association of South Africa [PASA] to stop unauthorised debit orders going off clients' accounts.

PASA's offering DebiCheck went live across 10 banks in August. It is a new type of debit order – which is confirmed on a once-off basis at the start of a consumer's contract with a company. The consumer confirms details to authorise future debit orders using their mobile phone by either confirming on a banking app or typing a code on their cellphone.

In addition to DebiCheck, the big five banks have shared their remedies for debit order fraud:

Nedbank: Nedbank's MoneyApp has a feature for debit order management, which clients use to check their debit orders. "Besides the ability to view debit orders, clients can dispute, stop or reverse unauthorised payments, offering them the opportunity to completely change the way they manage and control their money," a spokesperson said.

Standard Bank: "In the unfortunate event that our customers experience unauthorised debit orders, they need to report it to Standard Bank within 40 days of the debit order being processed. Once this has been done, the bank will query the validity of the transaction with the company that debited the account," a spokesperson said. Account holders have to regularly check their bank statements and alert the bank of any unauthorised debit orders.

On the bank's digital and mobile banking platforms, customers are sent a One Time Pin for authentication purposes for any new instructions initiated by the customer, the spokesperson said.

ABSA: Apart from making use of DebiCheck, ABSA's Ulrich Janse Van Rensburg, head of fraud strategy assured that the bank's innovations and products are subjected to "strict control assessments" to ensure that offerings are safe and secure. "A stringent, layered control, mechanism is adhered to before the products or services are launched and consequently offered to the customers."

ABSA also advises clients not to share their card PIN, CVV number or One Time Pin. Customers should not share their internet pin or password either. Additionally, customers should not open hyperlinks to log on to internet banking and they should carefully read all bank communications and never approve any transactions, if they are not transacting.

FNB: FNB recently waived the fee to stop unauthorised debit orders through its electronic banking channels. Ryan Prozesky, FNB Consumer Core Banking CEO, said the bank is also monitoring and analysing non-FNB businesses that are processing illegal debit orders on customers’ accounts.

FNB customers are currently notified by SMS every time a new debit order is raised on their accounts for the first time. They can stop, dispute and reverse it if it is unauthorised. The bank also has a warning system to alert customers through SMS or App notifications of potential suspicious debit orders that are running.

Debit orders higher than R200 can be stopped or reversed via the contact centre or FNB branch at a fee – the majority of unauthorised debit orders have been found to be under R100 and the fee is also a measure to prevent customers from abusing the system, Prozesky explained.


Similar News


Local content top priority

1 day - 22 March 2019 | Economics

A 'buy local' policy with local content requirements will, in the long run, help smaller businesses to sell goods and services to government.This was the...

Elando lyiilongomwa yomoshilongo olya simana

1 day - 22 March 2019 | Economics

Omulandu gwokulanda iilongomwa yomoshilongo monakuyiwa otagu ka kwathela aanangeshefa aashona moshilongo opo ya landithe iilongomwa nomayakulo gawo kepangelo.Ngoka omaiyuvo gOminista yIipindi, Tjekero Tweya...

Millions unaccounted for at NDC, says AG

3 days ago - 20 March 2019 | Economics

The Namibia Development Corporation (NDC) has failed to submit documentary evidence to prove how it spent N$90.1 million between 2015 and 2017, the latest report...

Africa Briefs

3 days ago - 20 March 2019 | Economics

No end date for Eskom’s power cutsSouth Africa's public enterprises Minister Pravin Gordhan said yesterday he cannot say yet when rolling blackouts will end, as...

Authorities still can’t do own financials

4 days ago - 19 March 2019 | Economics

Despite being exempted from paying audit fees and to use this money to develop skills, the majority of local authorities still fail to draw up...

Ghana bets on rejuvenated railways for growth

4 days ago - 19 March 2019 | Economics

Stacey Knott - As Ghana's urban landscape gently slides by the train window, Shaibu Amoah swells with pride.The 37-year-old has been helping to renovate railway...

New Era pays millions in tax penalties

5 days ago - 18 March 2019 | Economics

The New Era Publication Corporation (NEPC) has attributed its insolvency to the debts it owes to the receiver of revenue, printing cost and escalation of...

Boost Africa investment to win climate fight

1 week ago - 15 March 2019 | Economics

Patrick Galey - Governments and business must help countries in Africa deal with the fallout of climate change, the head of the World Bank said...

Calle: ‘Nothing sinister about budget delay’

1 week ago - 14 March 2019 | Economics

Finance minister Calle Schlettwein told Market Watch this morning that the tabling of the 2019/20 national budget has been moved to 27 March purely for...

Overall inflation down, food rate up

1 week ago - 14 March 2019 | Economics

Annual overall inflation in February was 4.4%, down from 4.7% the previous month, according to the latest data released by the Namibia Statistics Agency (NSA)...

Latest News

Namibians first!

1 day - 22 March 2019 | Business

The Construction Industries Federation (CIF) of Namibia has proposed that bidders with less than 100% ownership by Namibian citizens should be disqualified from bidding for...

2019 ‘to-do’ lists for business...

1 day - 22 March 2019 | Columns

Getting your business off to a great start in a new year requires planning, critical thinking and dedication to executing your strategy.We asked Forbes Coaches...

A fierce corporate climber

1 day - 22 March 2019 | People

Carlota David-Howoses was born and grew up in Rundu.She attended Noordgrens Secondary School in Rundu, then moved over to Etosha Secondary School in Tsumeb and...

We are at a crossroads

1 day - 22 March 2019 | Opinion

I remember when I turned 29. The battle scars were starting to show. There were hard decisions. The hangovers of 'nice times' and the gay...

Pupkewitz Megaboards opens door

1 day - 22 March 2019 | Business

Pupkewitz Megabuild recently opened a new subsidiary, Pupkewitz Megaboards. “Pupkewitz Megabuild continues to expand its product and service offering in line with the Pupkewitz Group’s...

Satrix lists ETFs on local...

1 day - 22 March 2019 | Business

Satrix on Tuesday announced its secondary listing of its global exchange traded funds (ETFs) suite on the Namibian Stock Exchange (NSX).The listing is the first...

Corruption - A social disease...

1 day - 22 March 2019 | Columns

Johan Coetzee - One of the most popular indices used by investors to provide them with an indication of the level of corruption and governance...

Government pharmaceutical plant on hold

1 day - 22 March 2019 | Health

Government's plan to construct a pharmaceutical plant is on hold until various agreements are reached with private sector partners involved in the project.This is according...

Local content top priority

1 day - 22 March 2019 | Economics

A 'buy local' policy with local content requirements will, in the long run, help smaller businesses to sell goods and services to government.This was the...

Load More