Banking app kidnappings: Sabric on how not to become a victim

TechCentral on Tuesday published an investigation into a worrying trend involving banking app kidnappings in South Africa.

Although these “shakedowns” are a form of digital fraud, their execution involves elements of coercion and violence – or the threat of violence at the very least.

Victims are often held against their will while their bank accounts are cleaned out through their banking apps. Much of the feedback TechCentral has received since we published the article suggests those who fall victim to this type of crime rarely have their funds recovered by law enforcement or repaid by their banks.

With the potential for destruction of livelihoods so high, the importance of minimising the risk against a banking app kidnapping is paramount.

TechCentral asked Nischal Mewalall, CEO of the South African Banking Risk Information Centre (Sabric), about banking app kidnappings and how people can protect themselves from falling prey to the criminal gangs behind these attacks.

Q: Sabric’s most recent report does not go into detail regarding banking app kidnappings and their prevalence? Is there data on this, and if not, what are the challenges in collating it?

A: Sabric does not collate data on “banking app kidnappings”. However, because Sabric, the South African Police Service, crime intelligence and the South African banking industry have a comprehensive joint strategy to tackle this crime type, we are aware that this is on the increase.

Q: What can you tell us about how these scenarios typically play out?

A: Express kidnappings primarily target bank clients, subjecting them to a range of tactics. The choice of tactic varies depending on the expertise of the offenders and may include factors such as routine activities, geographic location and the lifestyle of the victims.

Victims are apprehended and forced to withdraw substantial sums of cash from their bank accounts, either via ATM or at a bank branch.

Read: Banking app kidnappings are on the rise in South Africa

Alternatively, victims may be detained against their will and coerced into unlocking their mobile devices, granting offenders access to their banking applications. All available funds in the victim’s accounts, including credit balances and accessible home loan accounts, are transferred to intermediary mule accounts or withdrawn at various ATMs. Concerningly, several documented incidents have been characterised by high levels of violence.

Furthermore, it is worth noting that while the modus operandi is frequently reported in express kidnapping cases, similar methods are observed in some kidnapping-for-ransom situations. In these instances, perpetrators withdraw available funds from the victim’s accounts at ATMs, while simultaneously demanding a ransom from the victim’s family.

Q: How have the banks and law enforcement responded to this specific modus operandi?

A: To facilitate a co-ordinated response to kidnapping for ransom and express kidnappings, the South African Police Service, crime intelligence and the banking industry have jointly devised a comprehensive strategy to effectively tackle this crime type.

Q: What can consumers do to better protect themselves and their money against a banking app shakedown?

A: There are a wide range of things people can do to protect themselves:

• Situational awareness: Always maintain awareness of your surroundings, especially when entering or leaving your home. Being vigilant and observant can help you spot potential threats or suspicious individuals. Report any suspicious activity to the SAPS or local security service provider.
• Be alert: If something or someone appears suspicious or out of place, trust your instincts. Take note of unusual behaviour and pay closer attention to your surroundings.
• Avoid high-risk locations: Steer clear of places where people are likely to carry significant amounts of cash. Criminals may target individuals who appear to be carrying valuable items or large amounts of cash.
• ATM safety: Exercise extra caution when using ATMs. Be aware of your surroundings, shield your Pin, and avoid using ATMs in poorly lit or secluded areas.
• Don’t draw unwanted attention to yourself: Refrain from flaunting expensive jewellery, high-end branded items or other valuables in public. Such displays may attract unwanted attention.
• Transportation safety: Always use licensed and reputable taxi services to ensure your safety during travel. Avoid accepting rides from strangers.
• Diverse travel routes: Periodically change your regular travel routes. Criminals may monitor predictable routines, making it important to vary your routes when possible.
• Routine variations: Whenever feasible, vary your daily routines. Predictability can make individuals more vulnerable to criminal targeting.
• Seek attention if you suspect you are being followed: If you ever feel threatened or in danger, don’t hesitate to attract attention to your situation. Use any available means to draw help from others.

Q: Are there any technology-driven solutions that can aid consumers in protecting themselves?

A: In addition to the abovementioned safety measures, always ensure that your location services are enabled on your mobile device and consider sharing your real-time location with a trusted contact when travelling alone. This added layer of precaution can be invaluable in emergencies, allowing someone you trust to monitor your whereabouts and come to your aid if necessary.  – © 2023 NewsCentral Media