The South African Reserve Bank has called on all the country’s banks to advance on their cybersecurity following the activities of a global syndicate that led to the withdrawal of R300 million through credit card scam and fraudulent transactions in Japan.
Standard Bank of South Africa confirmed it has been affected by a credit card scam involving South African banks in Japan
According to the financial institution, the perpetrators used counterfeit cards to withdraw cash from automatic teller machines (ATM), leaving the bank with a gross loss of an estimated R300 million – this is prior to any potential recoveries that may be used to reduce the loss.
About a hundred people or more are suspected of being involved in this sophisticated fraud of as many as 14,000 transactions, carried out earlier this month.
Deputy Governor of Reserve Bank, Kuben Naidoo says the bank is set to apply the necessary measures to protect the country’s banking system from future cyber attacks, adding that they are working together with major banks to detect and repel cyber attacks.
Following the information streaming in this week about how some criminals found an ATM network poorly protected from cyber attacks, hoping that the fraud analytics software would not automatically block the transactions, Standard Bank says security measures have been put in place to make sure that no further illegal transactions will be made by syndicates in Japan.
Security experts deduced that the criminals decided to withdraw the money from Japan, because the country is considered a “low fraud risk” by banks.
So far, no arrests have been made in connection with the colossal credit card scam.