By Cornelia Van Heerden
The fast pace of growth in cellphone apps is catching the attention of cybercriminals, leading to greater risks of fraud.
While many smartphones have built-in fraud-prevention technology, the reality is that criminals are constantly on the lookout for ways to take over identities, spam or infiltrate smart devices, and steal and defraud from unknowing victims.
Demand for online retail is a key driver of growth and the trend is set to continue, which is why vigilance in needed at all times when online.
According to a study by World Wide Worx with Mastercard, online retail in South Africa passed the R50 billion milestone in 2022, driven by a boom in demand for home deliveries. Total growth for online retail in 2022 came to 30%, bringing the total of online retail in South Africa to R55bn.
And while the cellphone industry is making major inroads into prevention and securing customers against criminals as far as possible, major risks in SA right include banking, shopping and gambling apps.
In the digital banking space, for instance, while there was an 18% decrease in reported fraud incidents overall in 2022, most digital banking crimes were through banking apps, which also had the greatest portion of gross losses, at 49%.
Phishing, vishing and “smishing” – which is when criminals will call or SMS you pretending to be from reputable companies with the aim of getting your personal information (like a bank or card PIN number or a One Time Pin) – remain the preferred methods used to get access to ID numbers, passwords and login details. In terms of “smishing”, fraudsters will always attempt to create a sense of urgency to get you to give up your personal details. They may tell you that they are calling from the fraud department, someone is accessing your accounts and they need your details immediately or their organisation will not be held liable.
Phishing emails encourage victims to click on a link in the email that then directs them to a spoofed (fake) website designed to look like a legitimate bank website. Instead of using the link or sharing personal details over SMS, find the website yourself, using Google or another search engine, or put down the phone and call your service provider back to confirm that the emails/calls/SMS are legitimate.
Those committing mobile fraud also work to acquire a SIM swop via the victim’s mobile service provider. At MTN, strict measures are used to help detect SIM swop fraud. For instance, if an old SIM card is not working or not available, transactions can be performed only in store. Where an old SIM card is available, a SIM swop can be done through MTN’s US dollar channel, but the process also needs to start in store, with a SIM purchase. This enables us to verify legitimate SIM swops.
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- Treat requests for personal and confidential information with suspicion and use discretion when sharing this kind of information, should it be requested.
- Don’t provide personal information to unknown individuals via telephone, SMS, email, online or in app chats.
- Use a PIN to lock your device and SIM card at all times and keep your PIN in a safe place
- Ensure you password-protect your devices – but it doesn’t help if the password is weak. If the device falls into the wrong hands, your email, banking apps, shopping apps, financial accounts and other private data stored on the phone will be easily accessible.
- Multifactor authentication: This is one of the first things you must do to ensure the safety of your personal information. Essentially, this refers to an electronic authentication method in which a user is granted access to a website or application only after successfully presenting two or more pieces of evidence to an authentication mechanism: knowledge, possession, and inherence.
- Notify your service provider immediately if your device is lost or stolen.
- Store your device’s IMEI number in a safe place, so you’re able to have it blacklisted if stolen (most devices’ IMEI numbers can be checked by dialling *#06#).
- Be vigilant and don’t use your device in crowded or unsafe areas – or over unprotected networks or wi-fi connections.
- Keep your device secure and out of sight, and never leave it unattended.
- Avoid questionable app downloads.
- Back up your data and insure your device.
- Look for unusual activity on your monthly statement.
- Remove international calling and roaming features if you don’t use them.
- Register with the Southern African Fraud Prevention Service and apply for protection registration – 0860 101 248 or safps@safps.org.za.
Those connecting to the internet and cellphone apps for the first time are being actively pursued as easier targets. Vigilance is always your best defence and some of the above tips will help ensure you do not fall victim to the latest scams.
Van Heerden is MTN SA’s chief customer service and operations officer
PERSONAL FINANCE
* The views expressed do not necessarily reflect the views of IOL and its sister titles