| Watchdog
warns bank customers to be alert
5 December 2004 - Sunday Times
The Ombudsman for
Banking Services is warning consumers to stay alert during the festive
shopping season when using their ATM, credit and debit cards.
"It is encouraging to see banks being vigilant in informing their
customers to be careful when transacting with their bank cards. However,
customers are still being conned into parting with large sums of cash,"
says Advocate Neville Melville, the Ombudsman for Banking Services.
"This is the time of year when people are paid bonuses and they become
prime targets for con artists."
ATM complaints accounted for 20% of the total complaints
handled by the ombudsman last year. This year the figure looks set to
reach the same level. Complaints about credit and debit cards accounted
for 8% of total complaints to the ombudsman last year. There is a possibility
that this figure will increase should customers not remain on their guard
this festive season.
A concern is the effect that the recently launched Mzansi
account might have on the level of ATM complaints, especially because
this bank account caters for a large number of previously unbanked people,
through the use of ATMs.
"It is fantastic to see so many new accounts being
opened daily. It will be interesting to note how many people have never
used an ATM previously," says Melville. "This is where more
complaints could arise if consumers are not careful and if consumers are
not properly informed by the bank on what not to do."
The Banking Council has issued a strong warning to consumers
during this festive period. "Criminals step up their activities towards
the end of each and every year," says Claire Gebhardt-Mann, general
manager of the Banking Council.
Gebhardt-Mann says that the banks are doing everything
possible to keep customers safe and are working closely with the police
and other agencies to fight crime.
Should a consumer have a complaint regarding their ATM,
credit or debit card, the consumer must first lodge a complaint with the
bank concerned and allow the bank appropriate time to resolve the matter.
"Appropriate" here is 20 days.
Should a resolution not be reached, the consumer can approach
the ombudsman for assistance.
"We will look at the complaint from an independent
perspective, but fraudsters must be warned, you will be liable for all
losses should our investigations reveal that you tried to defraud the
bank," says Melville.
Some general security
tips offered by the ombudsman on ATM use are:
Never allow anyone to stand near you or assist you at the ATM.
Never enter your PIN (Personal Identification Number) unless the ATM
screen prompts you to do so.
Criminals involved in ATM scams will generally come across as well-dressed
and friendly. They are trying to convince you to trust them.
Avoid an ATM that does not easily accept your card on the first attempt.
Only use ATMs that are located in safe, well-lit areas.
Immediately report a card that has been retained by the ATM for any
reason.
The ATM-scam criminal uses sleight-of-hand techniques to obtain your
card and may try to convince you that your card is in the ATM. Do not
allow him, or an accomplice, to observe you entering your PIN.
Ensure that your daily withdrawal limits are in accordance with your
needs and appetite for risk.
Only allow your card to be skimmed through recognised devices at merchants
or inside banks. Keep your card in sight at all times and do not allow
your card to be skimmed if you are not making a specific transaction on
your account.
Tips on using your credit / debit cards:
Always know where your credit card is. regard it as cash.
Ensure that you have signed the back of your credit card.
Check your statements regularly. You have a limited time - 60 days according
to the Code Of Banking Practice - within which to dispute fraudulent transactions.
Inform the bank in writing if you relocate (even temporarily).
It is important that you report the loss of a card to the bank as soon
as you become aware of it.
According to the office of the ombudsman for banking services, a bank
customer will not be held liable for fraudulent transactions on his or
her credit card from the time the call is placed.
Do not count on your signature protecting you from fraud if your card
is stolen. The signature on your card can be forged and the signature
on fraudulent vouchers can only be compared with the signature on the
card itself - if it is recovered.
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