[Rek jou cheque] Risky business to always: The hidden dangers of contactless payments can cost you
In this age of digital crime and fraud, tap–and–go payments on banking cards really stress me out.
They feel like a crime waiting to happen, and if we aren’t careful, they can happen very easily.
When COVID-19 happened, consumers wanted contactless payments so they wouldn’t have to touch keyboards when putting in a PIN.
Since then, contactless payments seem to be the payment of choice, especially for small on-the-go purchases. It really is just a quicker, more convenient way of payment.
Banks have capped tap–and–go transactions at R500 and a maximum of 3 transactions.
Once a consumer moves past R500 as an aggregate or three transactions, the bank will insist that you insert your card or enter a pin when the card is tapped.
This was introduced to mitigate the risk of stolen cards being used for tap-and-go transactions.
Criminals may try to do as many transactions as possible under R500 because if the transaction is more than R500, it will require a PIN.
So though convenient, the increased use of convenient tap-and-go payments can put consumers in harm’s way.
“Imagine you’re paying for petrol and someone is standing near you,” said Richard Frost, Product Head from cyber security company Armata.
“They’re talking on their phone, it’s completely normal. Nothing to worry about, right? Well, until you tap the Point of Sale device with your card, that is.
“As you tap, that person taps your card, and the money comes off twice—once for the petrol and once for the fraudster.
“It’s an incredibly easy scam to perpetrate as well. You only need a credit card machine in your pocket, and you can take any amount from someone’s card.
“By the time the consumer gets the two notifications from their bank, the fraudster has disappeared.”
“You can spend quite a lot of money in one tap, which means that the skimming devices designed to siphon the funds at the moment of payment can really hit people hard,” said Frost.
Some banks allow customers to disable the tap functionality in their cards, which Frost said is the best way to ensure financial security.
“Only use it when inserting it into a machine and using your PIN. The best option is to use your mobile phone with a virtual card or digital wallet payment services like Google Pay or Apple Wallet,” he advises.
“Your mobile phone has more security. When you tap it, the amount will only come off once.
“After that, any additional taps will fail, which will prevent this type of fraud from happening.
“In addition, the phone has a time limit, which makes it harder for a criminal to come up and tap it.
“Then bolster this by making the tap amount on your phone small, so that you can protect yourself from the outset.
“Then, for the worst-case scenario, use a private folder on your phone to hide your banking apps.
“There have been cases where people have been held at gunpoint and forced to do an EFT, so don’t have your account visible.”
Armata said that consumers should consider using the chip and PIN functions on their cards for expensive purchases while their mobile devices are used for quick tap-and-go purchases.
It’s also advised not to make any payments in a crowded space and to opt into payment solutions that require some form of authentication.
Here are tips to help you protect yourself from tap-and-go fraud this festive season.
– If you are worried about tap-and-go, switch off the tap-and-go payments function on your cards.
– You can lower your card’s tap-to-pay limit to enhance security.
– Take Control at Point of Sale: Always tap the point-of-sale (POS) device yourself. Never let the cashier or anyone else handle your card during a transaction.
– Never share your card details with anyone unless it is on a secure payment platform. This includes ensuring that you never allow your card out of your sight when making payments, especially at merchants such as restaurants and fuel stations.
– Avoid unsolicited messages or calls asking for personal information.
– Always keep your card and PIN safe. Do not share your details with anyone, and be mindful of your surroundings when using your card in public.
– Report a lost or stolen card immediately to the bank and insist that the card be immediately deactivated and a new one issued.
– If you lose or have your mobile device stolen, you should call the bank immediately or log on to Internet banking to de-register your profile to protect fraudsters from hacking your phone and app and utilising funds through the app.
– Ensure that your smartphones and payment devices have the latest security updates.
– Ensure you receive notifications for every transaction made using your card. Regular account statements also help you monitor any unauthorised activity.
If you believe you’ve been a victim of fraud, don’t hesitate to report it.
The Banking Division of the National Financial Ombud (NFO) investigates all complaints at no charge, ensuring that consumers are treated fairly by their banks. But prevention is always better than cure.
You can contact the NFO on: 021 883 8000
And find them at: 25 Quantum Street, Technopark, Stellenbosch
dailyvoice@inl.co.za