09/01/2024
Beware of transactions with Capitec Bank. Their security is very lax, as detailed here.
I was involved in a most unfortunate incident of fraud on the morning of Friday 22nd December.
I checked my Nedbank internet banking facility at home on Friday morning before I left to go and buy some last minute presents. My pensions and annuities had been paid into the bank and I was solvent.
At the V&A Waterfront, I went to Body Shop to buy a gift for my daughter. My debit card was declined. I paid with my credit card and received an SMS to say that I was overdrawn and I should pay into that account immediately.
So I went to the Nedbank branch at the V&A to see what had happened. Mrs van der Fort, who was most helpful, checked my account and made a printout. An account in the name of John Ford (the name on my Nedbank account includes my middle name) at Capitec had received three payments from my Nedbank current account. The first withdrawal was R12500, then a second was made of R4000. Then R10000 was taken from my credit card account into my current account and then transferred to the Capitec account. A total of R26500. We contacted Nedbank's Fraud Division and they took the details. It appears that they then spoke to their counterparts at Capitec.
End of any shopping!
I then went to SAPS Sea Point and a fraud report was taken by Captain Kleynhans, who told me that it should have been reported to Table Bay police as the crime had been discoved in the harbour precinct. He geve me a case number and said he would send it on to the Table Bay station. Sergeant Francis phoned, took another report and gave me a new case number.
On Saturday morning, I went to the Capitec branch in Main Road, Sea Point and spoke to Mr Jean-Pierre le Roux. He checked on his computer and there was no trace of my name but, when he looked up my ID number it was in their records. A call to Nedbank obtained the transaction details and we then called the Capitec Fraud Division who identified the bank account number and told us that the balance had been frozen in that account and the case was being investigated.
I should, apparently, be refunded, but it will probably take four to six weeks.
The big question is: how can someone open an account in my name at Capitec using my ID number but without producing my actual ID document or a certified facsimile of it.
How did they get my current account details? Was it through the well-publicised release of personal details by one of the banks, or was it done by employee of Nedbank, my medical aid, Old Mutual or Liberty Life, all of whom make regular payments into my account?
I was interviewed by John Maytham on Cape Talk and numerous people phoned in and identified Capitec as being the bank which received the stolen amounts. It appears that they do not have the security controls used by other banks as they want to make it easy to open an account - too easy!
The podcast can be heard on Cape Talk at https://www.capetalk.co.za/podcasts/476/good-morning-cape-town-with-lester-kiewit/765383/a-cautionary-tale-bank-fraud
and subsequent conversations John held with Wendy Knowler and the Ombudsman: https://www.capetalk.co.za/podcasts/476/good-morning-cape-town-with-lester-kiewit/765546/all-or-nothing-what-are-the-options-for-bank-fraud-victims-if-cases-remain-unresolved-by-authorities
We just can not be too careful
