'Card Not Present' Fraud (Getty Images )

'Card Not Present' Fraud

Imagine receiving your bank statement and discovering that R10 000 worth of purchases have been made using your payment card – without your knowledge. This is usually what happens in a typical ‘Card Not Present’ fraud situation.

Card Not Present fraud occurs when a person pretending to be the cardholder makes unauthorised purchases on the cardholder’s account, usually over the Internet or when making purchases over the phone. The fraudster can obtain the cardholder’s card details in a variety of ways, including from the cardholder himself through a phishing scheme. Phishing occurs when a cardholder responds to a fabricated e-mail requesting the recipient’s full banking details.

FNB and Visa are both actively working to protect cardholders from Card Not Present fraud. FNB is addressing Card Not Present fraud through FNB Online Secure. Once activated, this service protects a cheque card or credit card by ensuring that it cannot be used for online purchases without the cardholder’s One Time PIN or password. 

Meanwhile, fraudsters will find it difficult to bypass the security features embedded in chip and PIN cards that are supported by Verified by Visa. All Visa cards contain an encrypted chip that only permits authorised access to information on the card. This enables safer electronic payments. The Card Verification Value (CVV2), a 3-digit code at the back of your Visa card, further protects Visa cards from fraud. If a fraudster obtains your account number but doesn’t know the security code, the purchase won’t be completed.

For further information about the Annual Card Security Week, click here.

To visit the information page at FNB, click here.

Further Reading:

Types of Credit Card Fraud

Card Security With Shakes And Thabang

Card Security With Shakes And Thabang 2

The Unusual Suspects

Avoiding Online Shopping Fraud