Bank fraud investigators bust card fraud syndicate
20 September 2007
Investigators from the South African Police Service (SAPS) Commercial
branch, assisted by Absa bank fraud investigators, made a major breakthrough in
the fight against debit and credit card fraud, when four members of a syndicate
were arrested in an apartment in Randburg during September 2007.
The Commercial branch has been investigating this syndicate for the past
three months. The alleged head of the syndicate, a Nigerian national, had
earlier fled his hideout in Kempton Park, when he learnt of the arrest of one
of his syndicate members, who worked as a waiter in a restaurant. It is alleged
that the said waiter was swiping credit cards of customers through a card
reader (skimming device), and recording the encoded information on the magnetic
strips of the cards. This information was later downloaded onto a computer and
used to encode and produce false credit cards. These fraudulent cards were
allegedly used by the syndicate to make purchases.
During the operation, police seized the following in the apartment, where
the syndicate was arrested: a laptop computer, a memory stick, an encoding
device, a skimming device, an embossing machine, 125 white plastic cards which
were meant to be encoded and 47 credit cards. The software found in the laptop,
was allegedly used to encode cards with information stolen through a skimming
device. It is illegal to possess, procure, use or distribute any device or
programme, such as an encoding device, skimming device or any computer
software, used to overcome security measures aimed at the protection of data,
such as the encoded data on a credit card.
Three Nigerian nationals and a South African female were arrested. They are
Olayinka Adegbenro (37), Victoria Bidemi Okoya, Olanrewaju Adebayo (34) and
Janene Brink (21). The accused already appeared in the Specialised Commercial
Crime Court in Johannesburg. Investigating officers are in the process of
establishing the origin of the cards that were seized and further looking at
the possibility of linking the accused to other fraud related incidents. The
Head of the Commercial Branch has issued a warning to members of the public to
be cautious when paying by credit cards, or when they use credit or debit cards
to withdraw money at automatic teller machines (ATMs).
Fraud syndicates use some of the waiters at restaurants to swipe cards
through skimming devices supplied by the syndicate. This happens when a
customer hands over a card for payment and is not present when the card is
swiped. The card is taken away and is out of sight of its holder. This is when
the card is skimmed without the knowledge of the card holder. When paying by
credit card, one should be cautious not to let the card go out of his and her
sight. It is preferable that one pays via a mobile speed point or accompanies
the waiter to the fixed speed point and not to rely on the waiters.
People who withdraw money at ATMs should be aware of the criminals posing as
security guards and offering 'help' to clients. As soon as the card is handed
over to the so-called 'security guard,' it is swiped through a handheld
skimming device without the knowledge of the card holder. A duplicate card is
then later produced, which is used to make fraudulent purchases.
Enquiries:
Director Phuti Setati
Tel: 012 393 5490/1
Cell: 082 778 4312
Fax: 012 393 5525/27
E-mail: mediarelations@saps.org.za
Issued by: South African Police Service
20 September 2007
