The bank said on Thursday, 13 May 2010, that in March 2007, the gross fraud amount for industry counterfeited cards stood at almost R8.5 million compared to the same month's figure of R15.63 million in 2008.
There was a slight increase in March 2009 while March 2010 statistics indicated an alarming increase to R8.968 million, more than five times the amount reported a year ago.
FNB Credit Card's fraud specialist Henk Vermeulen said consumers should understand how credit card skimming takes place for them to successfully identify a scam.
There are predominantly three methods of card skimming. Firstly, it can take place with a handheld device at retail merchants when the card is taken out of sight to process the transaction.
Another method, also done with a handheld skimming device, is when fraudsters distract consumers at Automated Teller Machines (ATMs) to obtain the PIN and card details.
The third method is when fraudsters place a high-tech device, disguised as part of the ATM, over the actual card slot. Once the consumer uses the ATM, their cards are skimmed.
Vermeulen said there are other means to scam people of their money: "Fraudsters can also place micro cameras and PIN pad overlays at ATMs to obtain the consumer's PIN."
Some banks have set up 24-hour fraud help lines. They are also in the process of replacing magnetic stripe cards with Chip and PIN cards in efforts to reduce incidents of card skimming.
"The newer Chip and PIN cards function with a PIN and not a signature, which makes all transactions significantly more secure," said Vermeulen.
Concluded Vermeulen: "By proactively reporting suspected fraudulent activity, consumers can help create a greater awareness around card crime, with the result that lower levels of card skimming may be reached."
The bank has warned that with the increasing prevalence of card skimming in the country, the onus is now on consumers to take drastic and decisive action once they suspect they have been victims of card skimming attempts.
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