Galia Durbach, CEO of FNB Core Banking Solutions, said the popularity of card-based transactional products is increasing. "With the addition of debit cards as a payment mechanism to credit cards and petrol cards, the use of card-based transactions is on the rise. Furthermore, with the introduction of the Mzansi account for first-time banking, more South Africans than ever before have a bank card of some type.

"Card payments are in essence more cost effective and safer than using cash. Cash is risky, and can be costly. Drawing money and depositing money all incur some cost for customers and in the event of theft, cash can never be recovered while lost or stolen credit or debit cards can be cancelled. By using card-based systems, the risks and costs of cash are taken out of the system," she explains.

Cards are also portable, and can be used internationally without the need for foreign exchange, with more than half of South Africans using their cards while travelling.

High risk perception

Visa International Vice President of Risk Management for Africa, Neil Hawkey, says the South African perception of risk around using cards as payment mechanisms continues to be relatively high, with 54 percent of Visa?s research sample reporting that they had security concerns when using cards while travelling in Africa.

And some 36 percent of people did not know what procedure they should follow if they suspected being the victim of a card-related crime.

Durbach says while criminals are always on the prowl looking for opportunities to abuse card-based systems, if cardholders are aware of what to look out for and know their responsibilities should they fall victim, their risk of any loss is very low.

Be aware of the scams

She says consumers should always be aware of the types of scams that criminals use. "Some of the major scams that we?re seeing include card skimming, phishing and identity theft".

Hawkey believes that the modus operandi of organised criminals has changed in the same way as the business world.

"Travel and communication have been made easier and more accessible. Visa and the banks are using technology to mitigate the risk. With the issuing of chip card technology throughout the world, criminals will face increased difficulty in operating and crime will be less viable."

While great attention is being paid to card skimming, it is important not to lose sight of the more traditional, less technologically-advanced types of fraud, such as application fraud and card interception.

Card skimming involves the use of an electronic device that records the details of the magnetic stripe on a credit or debit card with a single swipe, giving the thief the details of your card which can be used elsewhere or to create a cloned card.

Don't give your details away

Phishing is a relatively new delivery method for an old fraud attempt, which is either conducted using the telephone or email, and which entices a cardholder to part with their details on the pretext that it is the bank calling or requesting details by email. Identity theft is perpetrated when a criminal assumes the identity of a customer to steal their funds.

"Ten years ago criminals would send a fax or call via the phone to obtain your personal details. Nowadays they use the internet. Just as you wouldn?t give somebody your details when they arrive at your front door asking for personal information, nor should you give this information away on the net," Hawkey said.

Durbach adds: "At FNB we always advise customers to make use of InContact, the free SMS message service that notifies customers each time a transaction takes place on their account. This serves as an early warning system and will immediately alert customers to any suspicious transactions so that they can immediately put a stop to the card.

"By knowing what criminals are likely to try, learning how to avoid these crimes and knowing the process of reporting suspicious activity, customers will get the most from their payment cards," Durbach concludes.

* Research conducted by analysts Ask Africa.