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We take a look at the latest banking related crime statistics released by the South African Banking Risk Information Centre (SABRIC) for the year 2018. So just how many cash in transit heists or ATM scams or ATM robberies took place in South Africa in 2018? Or even more troubling how many fraudulent transactions took place on South African issued debit and credit cards? Read on to find out.
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Violent crimes related to banking (associated robbery)
This refers to cash in transit heists, or robberies at bank branches before money is being deposited or robberies after withdrawals were made at a bank, be it ATM or withdrawals at counters. The image below shows reported number of incidents and the costs associated with such incidents. As the trend line shows there has been a overall decline in the number of incidents as well as a decline in the costs (losses to consumers and/or banks) since the start of 2017
While the overall decline in the number and costs of incidents is a welcome relief, the number of associated robberies is still well over 20 incidents a month. Incidents of robberies before and after making withdrawals at ATM's have shown a 7% increase in 2018 when compared to 2017. This is a worrying increase. The SABRIC report had the following to say "Although offenders use several modi operandi to rob clients, the most prominent one remains where offenders follow a victim and rob them of cash which they have withdrawn at a bank branch en route to their residence or to their business premises. 2018 saw incidents of associated robbery after withdrawal at an ATM increase by 7%, while related cash losses decreased by 3%.This could be due to the belief by perpetrators that clients withdrawing cash from ATM machines are easier targets, despite the cash reward being lower than clients withdrawing cash inside the branch. A variation of the follow home modus operandi is where the victim is lured into motor vehicle under the pretext of being offered a lift. In some incidents perpetrators use a minibus and pretend to be the driver. The victim is then convinced to make use of the taxi, driven to a secluded location and robbed of their cash. In many cases the victim is also robbed of their bank card and forced to divulge their PIN code."
Provincial distribution of associated robberies
So in which province does the bulk of these associated robberies take place? Well its no real surprise that the majority of it takes place in Gauteng. It has the most number of people living in the province and the highest number of bank branches and ATM's. SABRIC had the following to say "Gauteng remains the most prominent province where associated robberies are committed due to the higher concentration of branches and ATMs"
Automatic Teller Machines (ATM) attacks
This refers to incidents in which criminals attempt to break open and steal cash from ATM's. ATM attacks in 2018 decreased by 7% compared to 2017, and even better news is the cash losses due to ATM attacks declined by -42% in 2018 when compared to 2017.
The method of ATM attacks in 2018:
So where has the bulk of ATM attacks taken place in South Africa during 2018? One would expect the majority of these attacks to have taken place in Gauteng since there are more ATM's to attack in the province. The map below shows the provincial distribution of ATM attacks in South Africa during 2018
- Explosives: 47%
- Grinder: 21%
- Burglary: 10%
- Cutting Torch: 10%
- Tools:8%
- Theft: 4%
So where has the bulk of ATM attacks taken place in South Africa during 2018? One would expect the majority of these attacks to have taken place in Gauteng since there are more ATM's to attack in the province. The map below shows the provincial distribution of ATM attacks in South Africa during 2018
Gauteng reported the most incidents of ATM attacks (36%) followed by Mpumalanga (17%) and the Western Cape (14%). The Northern Cape reported no ATM attacks. SABRIC had the following to say regarding ATM attacks "ATM attack incidents using explosives increased by 26% during 2018 when compared to 2017 however losses decreased by 15% for the same period. Although there was an increase in recorded attacks during 2018, most (70%) of them were unsuccessful and may have been perpetrated by inexperienced criminals. In most reported incidents, the fascia of the ATM was damaged but even in cases where there was severe damage, the safe was not breached. The theft of ATMs from retail stores re-emerged in the Eastern Cape in 2018 where perpetrators physically removed the lobby-type ATM and loaded it onto a light duty vehicle"
Back to the wild wild west. Bank robberies on the increase
The SABRIC reported highlighted that the number of bank robberies increased more than 100% in 2018 when compared to 2017, and that there was an increase of 59% in the losses for banks due to bank robbery incidents when compared to the prior year. So in which provinces did bank robberies take place? The summary below shows the contribution of all the provinces to the overall number of bank robberies reported.
- Eastern Cape: 44%
- Gauteng: 28%
- Mpumalanga: 7%
- KwaZulu-Natal: 6%
- North West: 5%
- Free State: 5%
- Western Cape: 4%
- Limpopo: 2%
- Northern Cape: 0%
Cash in transit robberies
Probably one of the most publised methods of bank and banking related crimes is cash in transit robberies. The SABRIC report had the following to say regarding cash in transit (CIT) crimes
"The following CIT crime subtypes contributed primarily to the overall incidents and cash losses suffered by the CIT industry from 2017 to 2018
CIT incidents were prevalent in 2017 and continued in 2018, peaking in May. After interventions by the SAPS and CIT companies, these incidents began to decline. Interventions included the SAPS led GANOLIMP a multi-party operational CIT initiative that was initiated in May 2018 to enhance detection and investigation, prevention as well as response and intelligence gathering of CIT incidents in the provinces of Limpopo, Gauteng, North West and Mpumalanga
During 2018 VOR incidents represented 40% of the total incidents reported and equaled the number of Cross Pavement robberies (also at 40%). Historically, Cross Pavement robberies were the prevalent CIT crime subtype. During 2017 VOR incidents represented 27% of reported incidents and Cross Pavement robberies 50%. "
The image below shows the number of incidents as well as the cost losses associated with cash in transit robberies. It also provides a breakdown of the subtype distribution for 2018.
"The following CIT crime subtypes contributed primarily to the overall incidents and cash losses suffered by the CIT industry from 2017 to 2018
- Vehicle on Road (VOR) attack incidents increased by 16% while cash losses decreased by 17%.
- Cross Pavement attack incidents decreased by 36% while cash losses decreased by 31%.
CIT incidents were prevalent in 2017 and continued in 2018, peaking in May. After interventions by the SAPS and CIT companies, these incidents began to decline. Interventions included the SAPS led GANOLIMP a multi-party operational CIT initiative that was initiated in May 2018 to enhance detection and investigation, prevention as well as response and intelligence gathering of CIT incidents in the provinces of Limpopo, Gauteng, North West and Mpumalanga
During 2018 VOR incidents represented 40% of the total incidents reported and equaled the number of Cross Pavement robberies (also at 40%). Historically, Cross Pavement robberies were the prevalent CIT crime subtype. During 2017 VOR incidents represented 27% of reported incidents and Cross Pavement robberies 50%. "
The image below shows the number of incidents as well as the cost losses associated with cash in transit robberies. It also provides a breakdown of the subtype distribution for 2018.
So where exactly are these cash in transit robberies taking place? The map below shows the contribution of each province to the total number of reported cash in transit robbery incidents during 2018. SABRIC had the following to say regarding the provincial distribution of cash in transit robberies. "Despite the 12% decrease in incidents in Gauteng from 2017 to 2018, the province contributed to 34% of reported CIT incidents in 2018. In the Eastern Cape incidents increased by more than a 100% from 2017 to 2018 and contributed to 18% of reported incidents in 2018."
Digital crime. The online wild wild west where tech robber roam
Digital crime: Banking Apps
With more and more South Africans switching to digital banking platforms such as online banking and banking applications, more and more incidents of digital crime is being reported. In 2017 there were 13 389 incidents reported across all digital platforms. In 2018 this increased by 75.3% to 23 466 incidents reported. The cost of digital banking fraud across all platforms in 2018 stood at R262.83 million (up 4.9% from 2017). The strong increase in digital crime however can be seen under banking apps. The image below shows the number of incidents and the costs associated with such incidents for banking apps for 2017 and 2018
SABRIC had the following to say regarding banking apps fraud and crime. "The increase in banking app fraud can be attributed to increased usage of this platform by bank clients. Fraudsters use Vishing to obtain transaction verification tokens also known as OTP’s (One Time Passwords) and RVN’s (Random Verification Number’s). The most prominent modus operandi in Banking App Fraud is Vishing. Vishing is where a fraudster phones their victim posing as a bank official or service provider and uses social engineering skills to manipulate them into disclosing confidential information. This information is then used to defraud the victim. It is important to note that there have been no reports where Banking App software was compromised to commit fraud. Fraud via the Banking App is committed using social engineering tactics like Vishing"
Digital Crime: Online Banking
This section takes a look at the number of incidents and the costs of such incidents relating to online banking. SABRIC had the following to say regarding online banking crime "Fraudsters use Phishing emails to gather client banking login credentials as this still remains the most effective way to obtain them. Phishing emails request that a user click on a link in an email which then directs them to a “spoofed” website designed to mislead them into thinking that it is their legitimate bank website, to obtain, verify or update contact details or other sensitive financial information. As with Bank App fraud, some of the Online Banking fraud modi operandi may also necessitate a SIM swop by the criminal to intercept transaction verification tokens (OTP’s and RVN’s). To do this, the criminal will need to do a SIM swop via the bank clients mobile service provider. In 5.9% (231) of the Online Banking fraud incidents reported to SABRIC in 2018, SIM swops were part of the MO. This figure is a 18% year on year decrease from 23.9% (679) in 2017"
From October 2018 to December 2018 an average of 325 new cases of online banking crime was reported. So now to a fraud type that makes digital banking fraud look like a vacation. In the next section we cover card fraud which is one of the biggest types of banking related crimes currently in South Africa with card fraud losses being almost 4 times greater than digital banking fraud losses.
Card Fraud: Debit and credit card losses, all fraud types, all countries
Card fraud via credit or debit cards being skimmed or cloned or information being copied thanks to malware on certain payment sites is one of the biggest banking related crimes, especially in South Africa.
SABRIC had the following to say regarding card fraud of all types involving South African issued cards and fraud taking place anywhere in the world.
"Total gross fraud losses for South African issued cards increased by 18% from 2017 (R739.9m) to 2018 (R873.3m). Gross fraud losses on South African issued credit cards amounted to R483.5m in 2018, an increase of 18.4% when compared to 2017 (R408.2m). Gross fraud losses on South African issued debit cards amounted to R389.8m in 2018, a 17.5% increase when compared to 2017 (R331.6m)."
SABRIC had the following to say regarding card fraud of all types involving South African issued cards and fraud taking place in South Africa only
"Total gross fraud losses for 2018 (R435.5m) for South African issued cards where fraudulent transactions took place in South Africa decreased by 2.8% when compared to 2017 (R448.3m). Credit card fraud decreased by of 4.7% when comparing 2018 (R187.9m) to 2017 (R197.3m). Debit card fraud decreased by 1.3% when comparing 2018 (R247.5m) to 2017 (R251m)."
SABRIC had the following to say regarding card fraud of all types involving South African issued cards and fraud taking place anywhere in the world.
"Total gross fraud losses for South African issued cards increased by 18% from 2017 (R739.9m) to 2018 (R873.3m). Gross fraud losses on South African issued credit cards amounted to R483.5m in 2018, an increase of 18.4% when compared to 2017 (R408.2m). Gross fraud losses on South African issued debit cards amounted to R389.8m in 2018, a 17.5% increase when compared to 2017 (R331.6m)."
SABRIC had the following to say regarding card fraud of all types involving South African issued cards and fraud taking place in South Africa only
"Total gross fraud losses for 2018 (R435.5m) for South African issued cards where fraudulent transactions took place in South Africa decreased by 2.8% when compared to 2017 (R448.3m). Credit card fraud decreased by of 4.7% when comparing 2018 (R187.9m) to 2017 (R197.3m). Debit card fraud decreased by 1.3% when comparing 2018 (R247.5m) to 2017 (R251m)."
In 2018 61.1% of fraud on South African issued credit cards took place outside the borders of South Africa while 63.5% of South African issued debit cards fraud took place in South Africa
The top 10 countries (excluding South Africa) where card fraud took place using South African issued debit or credit cards:
SABRIC on credit card fraud "In 2018 Card Not Present (CNP) fraud amounted to 79.5% of gross fraud losses on South African issued credit cards, followed by Counterfeit (13.9%) and Lost and/or Stolen (2.7%) fraud. CNP fraud increased by 28% when compared to 2017. There was a significant decrease of 54.9% on Lost and/or Stolen cards when comparing 2017 to 2018." So the bulk of the cases fraud on credit cards tool place on card not present (CNP) basis (thus buying goods and services where the card itself is not required.
SABRIC on debit card fraud "In 2018 Lost and/or Stolen debit card amounted to 42.5%, followed by Card Not Present fraud (37.8%) and Counterfeit fraud (19.6%). Card theft or card swopping at ATMs is directly linked to Lost and/ or Stolen card fraud and remains a concern. Card Not Present fraud increased by 62.3% when 2018 was compared to 2017, this increase could be a result of more debit cards transacting online. " So for debit cards the biggest chunk of fraud took place with lost and/or stolen cards. So what is being bought with debit and credit cards when cards are not present? The image below shows the prominent transactions that takes place on debit and credit cards when the actual cards are not present. So all that is required is the card details.
The top 10 countries (excluding South Africa) where card fraud took place using South African issued debit or credit cards:
- United Kingdom
- United States
- Ireland
- Luxembourg
- Cyprus
- Indonesia
- China
- Netherlands
- Australia
- Spain
SABRIC on credit card fraud "In 2018 Card Not Present (CNP) fraud amounted to 79.5% of gross fraud losses on South African issued credit cards, followed by Counterfeit (13.9%) and Lost and/or Stolen (2.7%) fraud. CNP fraud increased by 28% when compared to 2017. There was a significant decrease of 54.9% on Lost and/or Stolen cards when comparing 2017 to 2018." So the bulk of the cases fraud on credit cards tool place on card not present (CNP) basis (thus buying goods and services where the card itself is not required.
SABRIC on debit card fraud "In 2018 Lost and/or Stolen debit card amounted to 42.5%, followed by Card Not Present fraud (37.8%) and Counterfeit fraud (19.6%). Card theft or card swopping at ATMs is directly linked to Lost and/ or Stolen card fraud and remains a concern. Card Not Present fraud increased by 62.3% when 2018 was compared to 2017, this increase could be a result of more debit cards transacting online. " So for debit cards the biggest chunk of fraud took place with lost and/or stolen cards. So what is being bought with debit and credit cards when cards are not present? The image below shows the prominent transactions that takes place on debit and credit cards when the actual cards are not present. So all that is required is the card details.
For debit card fraud the major spending items include direct marketing related goods and services, taxi cabs, security brokers (so they steal their money and then invest it). A way of laundering the illegally obtained funds. And it seems like credit card fraudsters use the credit card details to buy hotel accommodation, airline tickets and spend it at travel agencies. So clearly the credit card fraudsters enjoy travelling a lot. The South African provinces most affected by card fraud is shown below.
Provinces most affected by credit card fraud
2018 saw Gauteng most affected by credit card fraud (44.1%), followed by the Western Cape (24.4%) and KwaZulu-Natal (18.8%).
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Provinces most affected by debit card fraud
The top three provinces affected by debit card fraud during 2018 were Gauteng (36.4%), KwaZulu-Natal (18.4%) and the Western Cape (14.5%).
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