Spyware News: Internet banking clients must be alert

THE Ombudsman for Banking Services has warned bank clients using internet banking to be on the alert.

The warning stems from a recent incident in which R331000 was fraudulently transferred out of a Gauteng resident‘s current and credit card accounts.

According to former Port Elizabeth attorney Clive Pillay, who is the national Ombudsman for Banking Services, the complainant had fallen victim to a phishing scam, which sees fraudsters send large numbers of e-mails randomly that appear to have been sent legitimately from a financial institution.

Once the unsuspecting bank client enters the fraudulent site and divulges his or her personal internet banking details, the fraudsters use the information to access the bank‘s genuine internet banking website and the client‘s internet banking profile.

“It is possible then to harvest confidential client information such as cellphone numbers and e-mail addresses. Then the cellular service provider, where the client‘s SIM card is swopped for a new one, enables the scamsters to intercept passwords required for sensitive transactions,” Pillay said.

This information was used to transfer money from the client‘s bank accounts into a number of fraudulent beneficiary accounts.

Through the intervention of the ombudsman, R209000 was recovered for the complainant in this case, but only because of delays in the bank putting his account on hold, and the negligence of other banks, which opened beneficiary accounts for the fraudsters without the documentation required by legislation.

“Banks issue constant alerts about such schemes, so in assessing complaints we must assume that the client has received sufficient warning,” Pillay said.

He cautioned the public not to respond to e-mails or telephone requests for personal banking details, and not to complete transactions at internet cafes, whose computers may have spyware to capture login credentials.

“People should respond immediately to any notifications from their banks regarding activity on the internet banking profile.”

Pillay said a new scam had also emerged.

“The fraudsters no longer perform a SIM swop to log into an account. Once a password has been dispatched to the client, they will phone pretending to be a bank official and request confirmation of the password and other confidential information. At this stage, red flags should be waving furiously.”