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Cape Town - Capitec Bank Holdings [JSE:CPI] on Thursday rejected claims that it flouts regulations of the Financial Intelligence Centre Act, 38 of 2001 (Fica) and so makes itself an easy target for fraudsters.
The bank has termed as "factually incorrect" reports implying that it does not abide by Fica regulations when opening new accounts, which makes it easier for scamsters to access stolen funds transferred from other banks where the fraud originated.
"Even though some of these cases result from client negligence, at Capitec Bank we’ve taken additional security measures to eliminate fraud while at the same time adhering to all Fica requirements when opening new accounts,” said Charl Nel, head of communications at the bank.
Nel reiterated that the bank has stepped up security measures, given the wave of cases involving SIM swap fraud and bank scams.
He said that Capitec clients who make use of online banking are issued with a unique internet banking username, password and security token.
The security token can either be an application on the client’s cellphone or a device on a keyring.
"The security token can only be obtained in-branch with fingerprint and photo verification and creates unique passwords to access a client’s internet banking account," Nel explained.
“The token is specifically programmed to the client’s internet banking account, so the generated passwords are unique and specific to the client.
"These passwords can be used once and only for a limited time, making it useless to someone shortly after they’ve been generated and used,” he said.
Passwords are not sent to clients’ cellphones via SMS, so fraudsters cannot obtain it through an illegal SIM swap, the bank noted.
It added that security tokens can also not be programmed to clients' internet banking accounts, because this process can only be done in-branch and it entails fingerprint and photo verification.
Capitec Bank does offer higher withdrawal limits compared to other banks, but clients can decide their own withdrawal limits.
“These changes can only be made in the branch with fingerprint and photo verification and not online or via a call centre," said Nel.
"This further heightens security measures for our clients,” he said.
- Fin24
The bank has termed as "factually incorrect" reports implying that it does not abide by Fica regulations when opening new accounts, which makes it easier for scamsters to access stolen funds transferred from other banks where the fraud originated.
"Even though some of these cases result from client negligence, at Capitec Bank we’ve taken additional security measures to eliminate fraud while at the same time adhering to all Fica requirements when opening new accounts,” said Charl Nel, head of communications at the bank.
Nel reiterated that the bank has stepped up security measures, given the wave of cases involving SIM swap fraud and bank scams.
He said that Capitec clients who make use of online banking are issued with a unique internet banking username, password and security token.
The security token can either be an application on the client’s cellphone or a device on a keyring.
"The security token can only be obtained in-branch with fingerprint and photo verification and creates unique passwords to access a client’s internet banking account," Nel explained.
“The token is specifically programmed to the client’s internet banking account, so the generated passwords are unique and specific to the client.
"These passwords can be used once and only for a limited time, making it useless to someone shortly after they’ve been generated and used,” he said.
Passwords are not sent to clients’ cellphones via SMS, so fraudsters cannot obtain it through an illegal SIM swap, the bank noted.
It added that security tokens can also not be programmed to clients' internet banking accounts, because this process can only be done in-branch and it entails fingerprint and photo verification.
Capitec Bank does offer higher withdrawal limits compared to other banks, but clients can decide their own withdrawal limits.
“These changes can only be made in the branch with fingerprint and photo verification and not online or via a call centre," said Nel.
"This further heightens security measures for our clients,” he said.
- Fin24
