Growing complaints for internet banking - report

Johannesburg – Complaints for internet banking in 2016  increased to 20%, from 16% the previous year, according to the Banking Services Ombudsman’s report.

The recently released report showed that over 5 200 files were opened in 2016, of which 1 345 were investigated in 2016. Collectively, 5 214 cases were closed in 2016.

The share of complaints related to ATMs had come down from 37% in 2015 to 28%. Contrarily, internet banking complaints shot up by 205. A total of 1380 cases were closed.

Among the main drivers of the complaints related to internet banking were linked to cellphone banking (+7%). “This suggests increased cellphone banking activity, but also a need for greater security,” the report said. A total of 940 internet banking cases were closed in 2016.

There was a 3% increase in credit card complaints from 8% in 2015. Of these complaints 36% was related to charge disputes with alleged elements of fraud.

Mortgage finance complaints dropped one percentage point from 12% the previous year. Current account complaints increased one percentage point from 8% in 2015. Personal loan complaints also increased two percentage points to 10%.

The report shows that most of the cases, 1 279 were opened at Standard Bank, followed by FNB at 1 036, Capitec at 948, Absa and Nedbank both received 888 complaints. Nedbank’s complaints had come down from 910 in the previous year.

Habib Bank, which came into the spotlight over Gupta-linked Vardospan’s intentions to buy a majority stake in the bank, received one complaint.

Similarly, VBS Mutual Bank, which granted President Jacob Zuma a R7.8m loan for the Nkandla homestead received one complaint.

Five safety deposit box cases were closed in 2016, however the data only accounts for data up to October 2016.

Last year, FNB customers fell victim to a few safety deposit box heists.

READ: FNB kills safety deposit box service after heists

The heists took place in December and on New Year’s Eve, with robbers stealing contents from over 300 storage units at branches in Randburg, Parktown and Sunnypark, Fin24 reported.

FNB subsequently decided to discontinue the safety box service. 

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