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A customer with a virtual banking card uses a smartphone to pay for a purchase.
Digital banking may be fast and convenient, but it’s also becoming a growing target for fraudsters. The National Financial Ombud Scheme (NFO) has raised the alarm after reporting a sharp rise in digital banking fraud complaints – up by a staggering 73% in the first five months of this year.
With virtual cards now being targeted more than traditional ATM cards, consumers are being warned to stay alert and take extra precautions.
Lead Ombudsman of the Banking Division at the NFO, Nerosha Maseti, says: “We have seen a significant increase in digital banking fraud in the past few months, like indicated, 73% increase year on year. I think the reason for the surge is that more and more banking customers are falling victim to phishing, swishing, where they are disclosing their confidential banking information to a third party, giving them access to a banking app and access to their funds.”
PODCAST | NFO raises concerns over a sharp rise in digital banking fraud complaints:
