Not only are retailers hoping for a bumper festive season, but criminals are also rubbing their hands together in anticipation of easy money.
If your tap-and-go bank card is lost or stolen, you could be in for anything but a festive season, warns the banking division of the National Financial Ombud Scheme (NFO).
Nerosha Maseti, the lead ombudsman for the banking division, said the Ombudsman for Banking Services has received complaints about tap-and-go transactions done with lost or stolen cards, and she said customers must immediately report lost or stolen cards to their bank to avoid potential losses.
“Banks set limits on NFC payments by using bank cards to reduce the risk of large fraudulent transactions. The tap-and-go payment option using a bank card is generally only available for a predetermined number of low-value transactions on any specific day, after which a PIN is needed to complete the transaction,” said Maseti.
“Improved customer experience and convenience are some of the biggest benefits, according to banks, of the tap-and-go functionality.
Maseti said banking customers should note, however, that some banks allow their customers to disable the tap functionality on their cards. Customers will then only be able to use the card by inserting it into the point-of-sale machine and entering their PIN.
“It remains important for banking customers always to be aware of the possibility of fraud and to remain ever vigilant and cautious with their bank cards and card details,” said Maseti.
Scanning devices:
The banking ombud has received no complaints about criminals stealing money from tap-and-go cards using scanning devices, Maseti said.
The banking division of the NFO said it is aware of reports about a voice note circulating widely, raising concern about potential fraud involving the tap-and-go functionality on bank cards by using unauthorised devices to access customers’ funds without detection.
The voice note claims criminals exploit the tap-and-go facility and steal money or card data by tapping a near-field communication (NFC)-enabled point-of-sale device close enough to a victim’s bank card through their wallets, clothes or handbags.
It is also claimed fraudsters use these devices to do as many transactions under R500 as possible until they have depleted all the funds available in a customer’s account.
Maseti confirmed that the NFO has yet to deal with a complaint about the modus operandi detailed in the voice note. The Ombudsman for Banking Services (now the banking division of the NFO) previously confirmed receiving several NFC fraud-related complaints about smart devices investigated by the office.
In those cases, fraudsters used stolen card information to link their smart devices, such as smartphones and smartwatches, to payment platforms like Samsung Pay, Apple Pay, Garmin Pay and Google Pay.
The NFO Scheme gives tips to avoid bank card fraud:
• Always keep your card and PIN safe and don’t share them with anyone.
• Understand your bank’s tap-and-go terms and conditions on the card the facility is activated and the applicable transactional.
• Ensure you receive notifications each time you transact on the tap-and-go facility and statements of account regularly. This way, you can report unauthorised transactions to your bank as soon as possible if an unauthorised transaction happens on your account.
• If you feel unsafe, speak to your bank about the possibility of deactivating the tap-and-go facility. There are banks which have this option on their banking apps. Alternatively, talk to your bank about your other options, including having to insert a PIN for any transaction regardless of the amount or setting acceptable daily and monthly limits for tap-and-go transactions without inserting a PIN.
• Always tap the point-of-sale device yourself and ensure your tap-and-go enabled bank card never leaves your hand.
• Report lost and stolen cards immediately.
Maseti encouraged any banking customer who might have fallen victim to this type or any other fraud or scam and who has not been helped by their bank to complain to the NFO.
At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
