Discovery Bank launches panic code feature, but be aware that misuse could cost you!

Consumer ninja Wendy Knowler joins Stephen Grootes on The Money Show.

With so many banking scams around, clients sometimes need to fight to get their bank to reimburse them for money they've lost through fraud.

But what happens if you're in a dangerous situation with someone for example holding a gun to your head, forcing you to give them access to your account?

Discovery Bank has launched a panic code, which it says is a first, to help clients who are under duress.

If forced to 'unhide' accounts, the person can enter the panic code instead of their security code. 

This silently alerts Discovery Bank, triggers real-time fraud monitoring, and they can coordinate with law enforcement if necessary.

This all sounds good in theory, but as Wendy Knowler points out, it can be difficult even during a normal day sometimes to remember the code for a particular card.

"I was thinking that if I had to have a gun to my head and had to remember this secret code set up some time ago, I don't know that I would remember it, but happily it has apparently helped quite  a few Discovery clients."

Wendy Knowler, Consumer Journalist

Be careful though of entering the panic code by mistake, and don't do a test run, Knowler warns.

She relates a case reported on by journalist Maya Fisher-French where a Discovery Bank client mistakenly entered his panic code when transacting.

"Next thing an ADT guard arrived at this property. Initially impressed at the response and the speed of it, the client was not happy to learn that Discovery was charging him a penalty fee of R1,000 for misuse, a discount on the full fee of R2,000 as a first offender."

Wendy Knowler, Consumer Journalist

Of course, Discovery Bank will have to evolve their security methods as criminals cotton on to their tactics.

In the meantime, clients who've taken advantage of the panic code tech would do well to memorise it properly or they’ll be losing funds to penalty fees, Knowler concludes.

For more detail, listen to the interview audio at the top of the article