Absa follows FNB's lead in reversing fraudulent debit orders

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Absa says it received two subpoenas from the Public Protector in the past twelve months.

JOHANNESBURG - Absa has followed FNB's lead in reversing fraudulent debit orders and refunding clients.

Both banks say they've detected abnormally high volumes and disputes of suspicious debit orders.

FNB cited unauthorised debit orders to Procall and Mzansi.

Absa says the modus operandi was to put through debit orders, for which they had no mandate, for amounts that would not trigger an SMS notification to clients from banks.

The Payments Association of South Africa and the South African Banking Risk and Information Centre is now pursuing criminal charges.

Source
eNCA