bank credit

In a statement, it said the industry's financial losses resulting from credit card fraud for 2009 had increased by 5%.

This represented a significant downward trend in the growth rate of industry card fraud losses compared with the 30% increase last year, said Sabric chief executive Kalyani Pillay.

She said banks remained committed to raising the public's awareness of its role in supporting industry initiatives to mitigate bank card fraud.

Most bank fraud losses involving South African-issued credit cards this year occurred inside the country, Pillay said.

Gauteng, KwaZulu-Natal, and the Western Cape accounted for 89% of the losses, she said.

Overall, card fraud losses inside South Africa this year decreased by 6%.

"Sabric attributes the decline in card fraud inside our country's borders to the decrease in certain card fraud types as a result of robust industry crime prevention measures, including public awareness.

"The impact of the reach of chip and PIN technology on the abuse of lost and stolen cards is beginning to be noticed," she said.

This was further supported by the industry's real time crime risk management, which facilitated the immediate detection of, and response to, incidents of fraud at merchant level.

Pillay said counterfeit card fraud was the primary fraud loss category this year, having increased by 22% to R144-million.

"Skimming of cards via hand-held skimming devices still remains the main modus operandi to obtain information needed, to manufacture counterfeit cards."

Pillay urged the public to adhere to safe banking messages from their banks such as not to let their cards out of sight when transacting or accepting assistance with their ATM transactions.

Pillay said the banking industry continued to work closely with the retail community to raise awareness of ways in which they could prevent over-the-counter purchases with counterfeit cards.

Pillay said the police and South African Revenue Service customs officials had played a huge role in the retrieval of skimming devices, particularly at the ports of entry.