N$600,000 lost to eWallet fraud – FNB

September 11, 2023

The First National Bank of Namibia (FNB) says that 788 transactions resulting in a loss of N$600,000 due to eWallet scams have been reported between August 2022 and August 2023.

This comes after a series of allegations have been levelled against the bank because of unexplained eWallet withdrawals.

“It is important to note that the majority of our clients have not been impacted by these opportunistic fraudsters. Approximately 0.06% of 1.3 million eWallet holders and 788 transactions in the period from August 2022 to August 2023 have been impacted as a result of fraudulent activity,” said Nangula Kauluma, FNB’s Executive for Retail Banking on Monday.

Yeoman Hamilton, Head of Transactional and Digital Banking at FNB, also explained the difference between one-time pins (OTP) and personal identification numbers (PIN), stating that knowing the difference between these two can go a long way in curbing eWallet fraud.

“We must emphasize that when a customer is informed by the bank that their OTP was compromised, this is the 4-digit number that was shared previously sometime in the past, and not at the point when the e-wallet is taken by the fraudster, using the 5-digit PIN generated at that point in time,” Hamilton said.

The bank further expanded on the security measures in place from the bank’s side, as well as the responsibilities of customers in terms of safeguarding their passwords, OTP, and PIN related to their banking accounts.

“It is important to note that both OTPs and PINs are created from a randomized series of numbers that are automatically generated and not created manually, ensuring that they cannot be compromised in their creation, nor passed on by any third party,” Hamilton said.

He further stated that the bank has also implemented an additional security measure that prevents OTPs from being inserted via another device that is not linked to a user’s account.

“This bank instrument is the most fundamental way to safeguard your money. While this may help somewhat, the sharing of your OTP, regrettably at any time with anyone, will still have the ability to put your funds at risk,” Hamilton warned.




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Last modified on Tuesday, 12 September 2023 18:36

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