MERGERS, ACQUISITIONS AND FINANCIAL RESULTS

EasyPay fights back after fraud

This week, an estimated 180 000 EasyPay customers will receive an e-mail that offers money-back rewards on all their transactions as part of the company’s strategy to restore its credibility and regain customers’ confidence after its site was hit by credit-card fraud two months ago.

EasyPay will also carry the full liability of any fraudulent transactions, said Serge Belamant, the CEO of Net1, the holding company of EasyPay. He said he has confidence in the site’s newly built security features.

EasyPay has one of SA’s largest third-party payment systems. It allows consumers to use their credit cards to pay their bills, including Telkom, the municipality and traffic fines, either through its website or at pay points in shops such as Pick n Pay.

It also allows consumers to buy airtime and prepaid electricity online and it was these purchases that were targeted in September by a crime syndicate. The criminals obtained a list of credit card numbers, which it used to buy airtime, electricity and prepaid gift cards.

The reaction from Absa, which found that one in three transactions were fraudulent, was to prevent its cardholders from transacting on the site temporarily until EasyPay removed the high-risk products. Some banks continue to limit the number of EasyPay transactions they allow.

Walter Volker, CEO of the Payment Association of SA, said EasyPay had nothing to do with the release of the credit card details. An investigation is underway to determine how the syndicate obtained the credit card details, which resulted in losses of millions of rands. It must still be determined which banks will carry the liability.

Belamant said the company had been unfairly targeted by the banks because it was not responsible for the breach. He said the high volume of traffic on the site — it does 4m to 5m transactions a month — made it attractive to fraudsters.

EasyPay processes payments worth R120m/month, according to Belamant, and the new site is growing at a rate of 10%/month.

Source: TechCentral

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