| Be
on your guard over the festive season
18 December 2004 - Personal Finance
Let your hair down during the festive season, but don't
drop your guard. That's the word from the Ombudsman for Banking Services,
the banks and short-term insurers.
Flush consumers are prime targets for criminals over the festive season,
so keep your wits about you and take extra care with your money. Whether
you are banking inside a branch, at an automated teller machine (ATM),
online, or paying for goods and services with your credit or debit card,
you should be ultra cautious over the festive season.
ATMs have become so widely used that many people hardly ever set foot
inside a bank. While nothing beats the convenience of banking at an ATM,
criminals prey on ATM users.
Neville Melville, the Ombudsman for Banking Services,
warns consumers to stay alert during the festive season when using ATM,
credit and debit cards.
"It is encouraging to see banks being vigilant in
informing their customers to be careful when transacting with their bank
cards. However, customers are still being conned into parting with large
sums of cash," Melville says.
Claire Gebhardt-Mann, the general manager at the Banking
Council, says criminals step up their activities each and every year-end
because of the extra cash in circulation.
Safety tips when using
ATMs:
Have your card ready in your hand before you approach the ATM.
When approaching an ATM, be alert and aware of your surroundings, and
scan the area for suspicious-looking people.
Only use ATMs in safe, well-lit areas.
Avoid ATMs where the card slot, keypad or screen have been tampered
with and never force your card into the card slot.
If you think and ATM is faulty, cancel your transactions immediately,
report the fault to the bank and use another ATM.
If you need assistance with an ATM transaction, ask a bank employee
for help, and not a security guard posted at the ATM.
Be cautious of strangers offering to help you, as they could be trying
to distract you to get your card or personal identification number (PIN).
ATM-scam criminals use sleight-of-hand techniques to obtain your card
and may try to convince you that your card is in the ATM so that they
or their accomplices can observe you entering your PIN.
Be wary of people who stand close to you when queuing to use an ATM.
Memorise your PIN. Never write it down or give it to anyone, not even
your spouse or a bank employee.
Don't choose an obvious PIN such as your birth date.
Follow the instructions on the ATM screen carefully.
Never enter your PIN until you are prompted to do so by the ATM.
Shield the keypad when entering your PIN at an ATM.
If your card is lost, jammed in or swallowed by an ATM, contact your
bank and stop your card immediately.
If you think your PIN has been compromised, change it immediately at
your bank.
Take your time to complete your transaction, and secure your card and
your cash in your wallet, handbag or pocket before leaving the ATM.
Set a withdrawal limit that suits your needs (the default is normally
R1 000). The larger your daily withdrawal limit, the larger your potential
loss.
Check your balance regularly and immediately report discrepancies to
your bank.
Tips on using your credit / debit cards:
Always know where your credit card is. Regard it as cash.
Ensure that you have signed your credit card.
Check your statements regularly. You have a limited time within which
to dispute fraudulent transactions.
Don't count on your signature protecting you from fraud because if your
card is stolen, your signature on it can be forged.
Inform your bank in writing if you relocate (even temporarily).
Report a lost card to your bank immediately.
Tips on banking and shopping online:
The Internet affords you the convenience of being able
to do your banking and shopping at any time of the day or night from wherever
you can log on to the 'net, but Internet banking and shopping are not
without their risks and you need to be as cautious as ever over the holidays.
Avoid doing your Internet banking in public places, such
as Internet cafés, because you never know whether the computer
has been loaded with software that may steal your banking or personal
information.
When shopping online, only provide your card details to
reputable companies. Ensure that you are shopping on a secure site. Check
for an icon of a closed padlock at the bottom of your screen.
To have a fraudulent transaction reversed, call your bank
immediately.
It is the responsibility of the organisation processing
the payment to prove that the transaction is valid.
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