/ 31 May 2006

Man arrested for internet banking fraud

An alleged member of an international fraud syndicate, believed to have been involved in defrauding local and foreign Standard Bank customers, is to appear in court on Thursday.

Standard Bank’s director of technology engineering, Herman Singh, said on Tuesday in a statement that the man was arrested after a joint investigation by the bank and the National Prosecuting Authority’s (NPA) elite Scorpions unit into internet banking fraud.

”We uncovered an international fraud syndicate responsible for defrauding local and foreign customers of hundreds of thousands of rands, and we arrested one man last Thursday,” said Singh.

It is alleged that the syndicate operated from internet cafés in Johannesburg’s northern suburbs, Pretoria, Cape Town and local airports.

Singh said computer equipment and hardware were seized from a business in Cape Town during a search before the arrest last week.

Several internet cafés and stores offering internet services were also searched.

”Computer spyware was found attached to 13 public computers. Spyware is used to capture banking customers’ banking credentials,” said Singh. ”Standard Bank has established that at least 50 customers from various local and international banks, who did their internet banking at the internet cafés, have had their banking accounts compromised.”

American, Canadian and English tourists have also been affected.

Singh said he could not provide any further information about the arrest or the man arrested, but added that Standard Bank is working closely with the Scorpions during its investigation.

He warned customers to avoid using internet cafés for internet banking purposes.

”The risk is just too great. Customers expose themselves to having their credentials compromised. There is little the bank can do to protect its customers in these types of environments.”

He added: ”We have always advised our customers to only do their banking from secure computers which have all the necessary security features such as anti-virus software.”

NPA spokesperson Makhosini Nkosi on Tuesday said he could not divulge further information about the investigation or the arrest.

”I can’t say anything about it tonight [Tuesday]. I will only be able to comment tomorrow [Wednesday],” he said.

Meanwhile, customers who believe that their personal details may have been compromised have been urged to contact the Standard Bank Call Centre on Tel: 0860 123000. — Sapa