Chip and PIN technologies have led to a significant trend shift in card fraud cases in South Africa, according to research by the South African Banking Risk Identification Centre (Sabric).

Established in 2002 Sabric is a wholly owned subsidiary of the Banking Association of South Africa and was later incorporated as a Not for Profit Company (NPC) in terms of the Companies Act in 2003.

The organisation said counterfeit card fraud, which was the single biggest contributor in the banking industry’s card fraud losses for the past few years, has been on a steady decline.

According to Sabric counterfeit card fraud, which contributed 38% of overall credit card fraud, declined by 45% in 2012.

According to the general manager for commercial crime office at Sabric, Susan Potgieter, there has been a change in the card fraud space in South Africa, and that has been the decline of counterfeit card fraud.

“Criminals tend to use stolen card information to perform online purchases, however they are now deterred by Chip and PIN technology,” she said.

Potgieter did however say that the decline in counterfeit card fraud has seen an increase in Card Not Present (CNP) fraud.

She explained that CNP was now becoming the biggest challenge in the country.

According to Sabric research CNP increased by 16% last year and contributed 51% of the total credit card fraud losses in the country.

Potgieter said, “CNP is now the single biggest contributor to credit card fraud losses on SA-issued credit cards.”