Card fraud on the increase

What you can do to safeguard yourself

17 September 2020 | Opinion

Windhoek • Riaan Viljoen

During the lockdown, a whole new generation of users discovered the joys and convenience of online shopping.
Worldwide, online debit or credit card fraud, better known as card-not-present (CNP) fraud, has increased exponentially, costing companies and individuals billions in losses. CNP fraud occurs when a scammer attempts to make a false debit or credit card transaction while not in physical possession of the card.
In the past, cards were stolen and used at Automatic Teller Machines (ATMs), at shop check-outs or cloned. But since online purchases have become a practical alternative to having to deal with traffic, parking, and long check-out queues, CNP fraud has escalated at an alarming rate.
Studies by BlueSnap, a United States-based global payments company, found that by 2023, worldwide retailers will lose about U$130 billion in revenue on falsified CNP transactions if they fail to keep up with digital fraud prevention measures.
Traditionally, financial institutions have always advised their customers to protect their Personal Identification Number (PIN). However, in the world of online shopping, all information on the card should be deemed confidential and be protected.

Security measures in place
The Card Verification Value (CVV), a three-digit number on the reverse of a debit or credit card, is an important security feature when making a CNP payments or purchases over the phone or online. The system was instituted to reduce the incidences of debit or credit card fraud and was used as a security feature to validate and confirm that you are in possession of the card – and therefore, its legitimate owner. Never share the three-digit CVV number on the back of your debit or credit card with anyone, except during a legitimate online transaction.
In 2015, the financial industry introduced chip cards to replace mag-stripe only cards worldwide. The initiative has significantly reduced statistics on counterfeit fraud. Unfortunately, it has stimulated CNP fraud on the internet, as this became the “easier” way of committing fraud. Fraudsters no longer need to steal a payment card; they only need the card information.
The information on your bank card – the full card number, known as the Primary Account Number (PAN); the expiration date on the front, and the three-digit CVV on the back; is all that is needed to conduct a payment transaction on the internet.
Websites have no way of confirming that the person entering the card information for an online purchase is the card's actual owner. Therefore, it is crucial to keep the card information confidential. Even during card related queries with your bank, never communicate the full PAN in any format. Sharing only the first six and the last four numbers of the PAN, known as masking the PAN, is vital in protecting confidential card data.

More tips
• Use Bank Windhoek’s AlertMe service notification, which notifies you whenever transactions occur on your accounts, be it debit or credit transactions. Never take a picture, or allow anyone to photocopy your Bank Windhoek debit or credit card.
• Do a little research to confirm that a web site you consider transacting on is legitimate before continuing. Never make direct payments, especially on websites you do not know; instead, use a trusted third party payment mediator like Pay mate or PayPal to conduct online shopping.
• Be wary of emails requesting personal or payment card information and never click on links in random emails of unknown origin. Regularly check your bank statements to confirm all card transactions. Discovering fraud sooner increases the chance of full compensation.
• Never allow a site to cache (save) your confidential card information.
• Do not share your full card number, CVV or expiration date in any format with anyone outside of a secure payment transaction.
To stay a step ahead of fraudsters, Bank Windhoek continues mitigating customer’s risk of exposure to such fraud by regularly adding features to its payment platforms. One such feature is 3D Secure - a global standard adding a much needed layer of additional security during CNP (online) transactions.
As part of a transaction, a confirmation code will be sent to a client’s cell phone. Acceptance of the message is a prerequisite to completing an online transaction. Watch the media for details on this feature that Bank Windhoek will be rolling out shortly.
*Riaan Viljoen is Capricorn Group's Information Security Specialist.

Similar News


Small savings can go a long way

13 minutes ago | Opinion

Windhoek • Elzita BeukesYou don’t have to put away thousands to see the benefit of savings. In fact, starting small will not only give you...

Breast cancer: Early detection saves lives

3 hours ago | Opinion

Windhoek • Marjolize ScholtzOctober is breast cancer awareness month and this year it is celebrated under the theme ‘Give Hope. Save Lives.”So far, 2020 has...

Get your mortgage approved like this!

1 week ago - 21 October 2020 | Opinion

Windhoek • Loide DavidAttempting to purchase a house without a plan in place can be a challenging situation. As a first-time homebuyer, you will need...

In times of trouble, manage your money better

2 weeks ago - 14 October 2020 | Opinion

Windhoek • Samuel LinyondiThe Bank of Namibia’s latest Economic Outlook expects the Namibian economy to fall into a deeper contraction during 2020, mainly due to...

Business: Create energy amongst your audience

2 weeks ago - 14 October 2020 | Opinion

Windhoek • Natasja BeyleveldDuring 2020, we adapted to digital-matter-of-fact at an exponential pace. The fireworks of newly launched online businesses and sales-platforms were cheered on...

Prioritise your mental health

2 weeks ago - 12 October 2020 | Opinion

Windhoek • Marjolize ScholtzWith over 35 million posts tagged #selfcare on Instagram, it’s clear that we’re more aware than ever of the trend to take...

Be our guest and be your own host

1 month - 15 September 2020 | Opinion

Windhoek • Jurgen IsaacsWe sit behind our computer, tablets and other devices all day. Creating documents, doing projects, sending out quotes and all matter of...

Safeguarding our children’s mental health

1 month - 14 September 2020 | Opinion

Windhoek • Ayesha WentworthLife is tough, no doubt about it. Just assess your own life and all the things that are thrown at you on...

Managing your debt the easy way

1 month - 11 September 2020 | Opinion

Windhoek • Loide DavidIn August, the Bank of Namibia (BoN) cut its benchmark interest rate by another 25 basis points (BPS), a standard unit of...

No going back to old way of schooling

1 month - 11 September 2020 | Opinion

Windhoek • Prateek KhareWith the reopening of schools around the country, there are many questions in the minds of every stakeholder of the education sector,...

Latest News

Grieving parents sue health ministry...

1 hour ago | Health

Windhoek • [email protected] pair of grieving parents is suing the health ministry for between N$2 million and N$3 million for breach of duties and gross...

NBL celebrates a centenary

2 hours ago | Business

“We are officially 100 years old today and what an adventurous journey it has been for our business!” says an excited Marco Wenk, managing director...

Breast cancer: Early detection saves...

3 hours ago | Opinion

Windhoek • Marjolize ScholtzOctober is breast cancer awareness month and this year it is celebrated under the theme ‘Give Hope. Save Lives.”So far, 2020 has...

Walking the talk

18 hours ago | Society

It began as an invitation for a group of friends to take a casual walk in support of breast cancer awareness last week. But it...

Namibia ready for Eilat!

1 day - 27 October 2020 | Sports

The world watched on Sunday and Monday, as the Namibian Esports team took on the team from South Africa online in the Southern Africa Region...

Hot hockey on the cards

1 day - 27 October 2020 | Sports

The Namibia National Inline Hockey (NIIHA) team trials where held last weekend and while the temperature outside was hot, the action inside was on fire!This...

Micro grant for Gobabis foundation

2 days ago - 27 October 2020 | Society

The Light for the Children Foundation in Gobabis received N$180 000 from the German embassy's micro project fund to implement safety measures at its school...

Aiming for top cycling honours

2 days ago - 27 October 2020 | Sports

The Nedbank Desert Dash is the principle for every cyclist, and this year, the Namibia Cleaning Chemical Solutions (NCCS) Cymot Pro Cycling team says the...

Purchasing property for the parents

2 days ago - 27 October 2020 | Life Style

It is not uncommon for those who find themselves in a better financial position than that of their parents, to purchase a property on their...

Load More