Hundreds of millions of rands are lost each year through bank fraud and although the banks assume responsibility in many instances, you should also be on your guard to prevent criminals gaining access to your bank accounts.
Using a credit card is convenient. It means you don't have to carry large sums of cash, and you don't have to provide proof of identity as you would if you paid for your purchases by cheque. Also, credit and other bank cards allow you to do your banking on the internet, by telephone or at an automatic teller machine (ATM) when it suits you.
Unfortunately, in spite of security features, such as card verification codes, personal identification numbers (PINs) and passwords, criminals still manage to fraudulently use credit and cash cards.
Apart from stealing your card, there are a number of ways in which thieves can buy on your account. These include using your banking information to buy goods on the internet and using a card reader to make fake credit cards.
Blackie Swart, Standard Bank card division's fraud control manager, says the number of counterfeit credit cards in circulation has increased by about 34 percent in the past year.
"Criminals employ waiters and waitresses to 'skim' the information from customers who use cards such as Diners Club, American Express and other bank cards with high credit limits.
"They use card readers or 'skimming devices' to record the electronic data contained in the magnetic strips on the back of the cards, with each device capable of storing information from up to 275 cards. This enables them to create duplicate cards that are used to access customers' bank accounts as well as buying goods," he says.
Swart says it is virtually impossible to distinguish the counterfeit cards from the real thing. He advises consumers never to allow their credit card out of their sight, to check their statements carefully and report suspect transactions within 60 days or sooner.
Online security
The internet is another potential fraud trap, as buying goods online has become common, and most banks provide internet banking facilities.
William Ramwell, of First National Bank's media liaison office, says the security protocols used by South African banks are world class and are evaluated regularly. But you should still be vigilant, because hackers have been known to hijack some popular websites, and you should ensure that the website you are on is the one you requested before entering your card number and PIN or password.
To do this, check the security certificate by clicking on the Verisign logo. You will be taken to a new page with the digital certificate and the address of the website you requested given in the address window of your browser. Alternatively, right click on the webpage and then left click on "Properties" to see the address.
Buying goods online is potentially hazardous because you have to provide information that may be used to buy other goods on your account. You should only provide credit card information to reputable companies on secure shopping sites and for single purchases.
If you are using Internet Explorer or Netscape, a picture of a closed lock at the bottom of your screen indicates a secure shopping site.
And, even if you don't bank or buy on the internet, you need to beware of fraudsters pretending to be legitimate operators, who use the telephone to obtain your banking details.
Telesales are becoming an everyday occurrence and most consumers are accustomed to receiving calls from salespeople who want them to buy anything from a basket of fruit in aid of charity, to retirement and hospital plans sold by the banks themselves.
Your bank already has all the information needed to process debit orders in respect of financial or other products, so they should never need to ask for these details on the phone.
Similarly, you should check up on anyone who phones and asks for credit card details, including the number, the card verification code (the three extra digits on the back of the card), the card expiry date or your identity number, as these can be used to make internet purchases on your account. Tell the caller you will phone him or her, so you can verify that they are from a reputable company.
Last of all, never ever give your PIN to anyone.