Security of clients, particularly when using ATMs, has been a hot topic of debate by the financial institutions.
"No sooner do we think we've have stopped one type of fraud than another rears its head," Bob Wooddisse, executive Nedcor Bank general manager, personal banking, says.
Nedcor Bank is installing new technology to stop widespread ATM jamming fraud.
The system, known as a sensorised card reader, foils attempts by fraudsters. Once a card is identified as "jammed" in the ATM, three functions are triggered:
* The ATM system at the bank is alerted to the vandalism or tampering of the card reader;
* The ATM becomes non-operational once tampering has been detected; and
* The magnetic strip data on a card that has been trapped is scrambled, rendering the card useless at any ATM.
The upgraded technology has been installed at 16 Nedbank ATMs. "We will monitor all ATM activity and where we identify a higher incidence of this type of crime, we will install the new technology at these sites as a priority," Wooddisse says.