South African bank warns of card-skimming schemes

05.09.2006
Absa has warned ATM users against card-skimming syndicates, as more ATM users throughout South Africa are falling victim to these criminals. Customers of all major banks have been targeted.

Using sophisticated hand-held card-readers, skimming devices or devices placed over ATM card slots, the high-tech thieves can quickly capture data encoded on the card's magnetic strip.

"Then, by simply peering over the victim's shoulder -- called 'shoulder surfing' in the industry -- they are able to obtain the PIN number keyed in," says Venete Klein, Absa executive director.

"With that information the syndicates create a duplicate card and empty the victim's account. Because the victim still has his/her card in their possession he/she is none the wiser.'

"The criminals use different methods to skim cards," says Klein.

"In some instances they choose a site with two ATMs and jam one of the machines so a card cannot be inserted. At that point another 'client', busy with the other machine, invariably offers help.