Discovery Bank launches secret panic code feature

Discovery Bank has rolled out several new security features on its mobile app, including a system for secretly warning the bank and law enforcement when a user is in danger.

CEO Hylton Kallner said the solution was being patented as an industry first.

To use the feature, customers must hide their most valuable accounts in a new digital vault that can only be accessed via a client-selected security code.

Clients must then create a custom panic code they can enter as an alternative to access the vault.

While the app will behave as if the customer entered their regular digital vault PIN, it will send an alert to the bank’s fraud management team in the background.

“They will start monitoring transactions and, when necessary, activate an emergency response — including alerting law enforcement and armed response,” Kallner said.

Discovery Bank’s panic code solution comes as the South African banking industry has grappled with a recent surge in “express kidnappings” with the intent to force customers into making certain transactions under duress.

As digital banking adoption has grown, opportunities to rob people of cash have declined, forcing criminals to devise alternative methods to steal their money.

Where kidnappings have previously focused primarily on high-net-worth individuals with large balances in their bank accounts or families capable of paying high ransom fees, the target has shifted towards everyday South Africans.

While there are many panic button apps for smartphones — including some integrated into banking apps — these can be very risky to use while being held at gunpoint.

The panic code will serve the exact same purpose as the PIN with the additional covert alert, which means kidnappers will have no way of knowing that the client warned the bank they were under duress.

Personnel will also be able to see where money from the account is being transferred for flagging with other banks, if necessary.

The team should also be able to see when and where any withdrawals on the account take place, which could be useful information for police and private security trying to identify the location.

Fraud warning feature and AI-powered advice

In addition to the panic code, Kallner said the banking app will link clients to emergency services with Discovery 911 when required.

“By integrating these services directly into our app, we make it easier to access emergency help, whether it’s medical, roadside or home-related,” he explained.

Discovery Bank is also rolling out a persistent fraud warning feature aimed at protecting customers from scam callers trying to gain access to their accounts by pretending to be bank staff.

To use the feature, customers must open their banking app while on a call.

Discovery Bank will analyse the phone number and warn customers via a persistent in-app banner if the call is not from one of its official numbers.

Another new tech innovation is an artificial intelligence (AI) tool to give customers more personalised support.

The Discovery AI service will be accessible via the bank’s WhatsApp channel, once a customer authenticates their identity in the Discovery Bank app.

They will then be able to access a set of advisory capabilities through text, voice notes or images.

The bank said the AI-powered chatbot will provide customers with tailored answers around their spending and savings patterns and enable them to understand their accounts better.

They can also get suggestions on how to budget effectively and maximise product features and rewards.