Clock Ticking For Magstripes On Bank Cards In South Africa

As part of an ongoing effort to improve security and convenience, First National Bank FNB, in collaboration with state-owned roads agency Sanral, has rolled out new contactless payment terminals at tollgates along the N3 and N4 routes. Daniel Kaan, CEO of FNB's Commercial and Corporate Transact division, explained that the growing threat of magstripe fraud and the security risks associated with offline magstripe transactions had been a significant concern, financially impacting both banks and cardholders. "This led to a decision across the industry to phase out magstripe terminals and accelerate the adoption of contactless technology," Kaan said. "Additionally, the widespread roll-out of contactless cards by issuers has created a seamless, universal payment system for customers traveling on the highways." This move follows a surge in complaints from FNB and Standard Bank customers, who have taken to social media to report fraud on their accounts linked to the reference "FACEBK". Reports from as far away as the Philippines suggest that the scam, which involves the unauthorized purchase of Facebook ads using stolen funds, may be part of a larger international scheme. Although the banks have yet to confirm how customer card data was compromised, an X formerly Twitter post by former banker Duncan Beach suggests that magstripe card skimming at toll gantries could be the cause.