Are OTP claims enough? Standard Bank defends its fraud investigation process

Standard Bank has responded to complaints by customers over money disappearing from their accounts and OTPs that they never authorised. Standard Bank has defended its handling of fraud-related complaints after growing public scrutiny from customers who insist they never authorised disputed transactions despite the bank’s repeated reliance on one-time password (OTP) authentication records. The response follows anearlier report by IOLdetailing claims from several customers who accused the bank of dismissing fraud complaints with what they described as “template responses” centred around OTP verification.

In a detailed media response, Standard Bank spokesperson Ross Linstrom stated that the bank takes all fraud-related complaints seriously and assesses each matter independently. “Each case is assessed on its own merits, guided by our empathy for impacted clients, regulatory safeguards, and a thorough review of available evidence,” Linstrom said. At the centre of the latest dispute is a customer complaint involving Shyft, Standard Bank’s foreign exchange and international money transfer platform.

According to the bank, the customer initially disputed the transaction as a chargeback matter between the client and the merchant before later alleging fraud. The bank said the card scheme handling the matter declined the chargeback dispute, after which Standard Bank conducted its own investigation. “We then conducted a further investigation, which confirmed that the transaction was an authenticated card-not-present purchase,” Linstrom said.

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“Our records show that a one-time password (OTP) was generated and sent to the client’s device to approve the transaction.” The bank further stated that the matter proceeded to arbitration, where the transaction was ultimately deemed legitimate. “Later, the client revealed that their device was compromised, which did not change the outcome of the ruling given,” Linstrom said.

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