THE Eastern Cape has seen a dramatic decrease in credit card fraud losses in the past 12 months.

Banking industry losses resulting from credit card fraud in the province have decreased by 46%, an indication that customers and banks have taken precautionary measures to guard against this type of crime.

This was revealed yesterday by the SA Banking Risk Information Centre (Sabric).

Sabric commercial crimes unit general manager Susan Coetsee said a general downward trend in card fraud had been observed nationally, and especially in the Eastern Cape. This was indicative of the progress of industry counter-measures.

“The millions of rands that card fraud costs the industry in terms of financial losses each year, however, is still of concern. The figures do not even include the costs incurred by the industry combating this crime,” she said.

The banking industry in the province lost R3,7-million this year, down from last year’s figure of R6,9-million.

Fewer card fraud incidents have also been witnessed in the province this year compared with last year – 7499 incidents compared with 16981 last year.

Coetsee said like most of the country – with the exception of Gauteng, KwaZulu Natal and the Western Cape – the Eastern Cape had traditionally accounted for lower card fraud financial losses.

Of concern, however, was that the province was experiencing similar card fraud types to the provinces that accounted for the highest losses, which increased the risk of displacement when prevention measures succeeded elsewhere.

“That’s the reason the banking industry is investing in crime awareness campaigns to empower the public with crime prevention knowledge.”

Sabric also reported that credit card fraud losses countrywide had surged by 5%, costing the banking industry R443-million – up from R420-million last year.

Cross-border fraud with credit cards issued by South African banks increased by 23% this year, to an industry cost of R145-million.

These were taking place in regions like the United States, Europe, Mozambique, Australia and Lesotho.

Credit card fraud in the Eastern Cape is mostly prevalent in Port Elizabeth, East London, King William’s Town, Queenstown and Mthatha.

Proceeds from this type of crime in the province are used for purchases in restaurants, butcheries, grocery stores, liquor stores and fast food outlets.

Coetsee said the partnership the banking industry had forged with the government, and especially the police and other law enforcement agencies, had been a key factor in the progress the banks were making to reduce bank-related crime.

“We encourage consumers not to be complacent,” she said.