Standard Bank is investigating complaints from frustrated clients who lost thousands of rands through fraudulent transactions on their accounts in minutes.
Clients who spoke to Sowetan said the reference was “Facebk” and the amounts were taken in small transactions, with one victim saying she lost R20,000. Many victims took to X to share their frustrations.
The bank has attributed this to card-not-present (CNP) transactions, or online payments where physical cards or their holders are not required. The bank's spokesperson Ross Linstrom said CNPs are unique as they have become a core of modern online commerce.
Fraudsters exploit card-not-present channels to perpetuate schemes involving false advertising. Standard Bank investigates every fraud complaint on its individual merits, and the outcome of the process is communicated directly to the impacted client
— Ross Linstrom, Standard Bank spokesperson
“However, they also present unique challenges and risks. Fraudsters exploit CNP channels to perpetuate schemes involving false advertising,. Standard Bank investigates every fraud complaint on its individual merits, and the outcome of the process is communicated directly to the impacted client,” he said.
Linstrom said fraudsters purchase advertising space online to promote deceptive products.
“They make fake offers and phishing scams designed to steal personal and financial information. The ads can appear to be legitimate, making it difficult for consumers and advertising platforms to detect the fraud until it’s too late.
“The growth of CNP transactions underscores the need for businesses, platforms and consumers to work together in maintaining a balance between seamless user experiences and advanced security protocols,” Linstrom said.
He said emerging technologies such as biometric verification and real-time transaction monitoring offer hope to stay ahead of the challenges.
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