Cards set to replace cash as consumers move to more secure transactions.
Lusaka, 26 November 2015: Cardholders in Zambia primarily use their cards for making withdrawals at ATMs, but a steadily increasing number are also using their cards for cashless purchases (full report attached).
FNB Zambia in partnership with Visa presented detailed research on consumer awareness of card security issues and card usage patterns in their 3rd annual Card Security Week in Lusaka. The research was conducted amongst customers of all the leading banks and in centres across the country during the 3rd quarter of 2015.
“Consumer education remains critical for FNB. We can see that most customers have a good understanding of some aspects of card security, but remain vulnerable in others,” says Mako Ndumba, Head of Risk for FNB Zambia.
“Most of consumers never let their cards out of their sight during a transaction, and most consumers feel secure when making a purchase with their bank card, yet over 60% are not aware of the ways in which fraudsters operate and over 80% believe that fraud will not happen to them,” added Ndumba.
While card fraud remains extremely low due to security measures offered by FNB and Visa, consumer awareness is critical in ensuring that consumers remain secure.
“At Visa we employ multiple layers of security that work together to help us manage fraud,” says Sally Makau, Country Manager for Visa in Zambia. “We invest heavily in advanced fraud fighting technologies and continue to develop new innovative programs to mitigate fraud and protect cardholders.”
Visa’s efforts have helped keep fraud rates steady, near historic lows, enabling Visa cardholders to use our products with confidence.
FNB is further setting out to encourage customers to pay for goods with their cards, rather than drawing cash at an ATM and then using that cash to make a purchase in shop where there are Point of Sale (POS) facilities.
“Carrying cash is by far one the riskiest things a customer can do as pickpockets and bag snatchers are active in the large centres. Even if they steal your card, they cannot use it without your PIN. For that reason PIN security is extremely important. Our survey shows that 54% of customers keep their PIN a secret and another 29% share their PIN with one other person. Of course, people should never share their PIN with anyone,” says Ndumba.
Many bank card users remain unsure of who is responsible if a financial loss occurs with the majority of respondents believing that their bank or the merchant is responsible.
Says Mako Ndumba: “FNB has a policy to assist the customer who has acted responsibly and protected their PIN and their card. There are instances where a vigilant customer can become a victim, we are able to investigate card fraud and can detect patterns that indicate if a fraudster is using the card in crimes such a skimming and cloning and online fraud.
“FNB and Visa make great efforts to educate customers on how to prevent card fraud by keeping their PIN secret and making sure that their card never leaves their sight because the best defence against card fraud is an aware and vigilant customer,” adds Mako.
“We noted in our research that most customers would like to receive information on card security via television, radio and print media, and FNB Zambia is meeting these requirements; not just in the major centres of Lusaka and Ndola but across the country. Our national survey alone resulted in growing awareness. FNB Zambia is committed to continue with this project in partnership with Visa for the benefit of all Zambian bank customers,” says Ndumba.
Top card security tips
* Always treat your card and PIN as you would cash
* Never let anyone see your PIN
* If you suspect that someone has seen your PIN change it immediately online or at an ATM.
* FNB Zambia Card Cancellation number +260 211 366816
Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.