Tap-and-go bank bank cards which do not require a PIN for purchases up to R500 are a boon for criminals intent on going on a festive season shopping spree.
The Banking Ombud said complaints have been received of tap-and-go transactions conducted with cards that had been lost or stolen – and the public is urged to be cautious, especially with fraud attacks expected to increase at this time of the year.
However, no complaints have been received by the Banking Ombud relating to money being siphoned from tap-and-go cards by criminals using a scanning device.
The Banking Division of the National Financial Ombud Scheme (NFO) said it was aware of reports about a voice note circulating.
This voice note raises concerns about potential fraud involving the tap-and-go functionality on bank cards, with the use of unauthorized devices to access customers’ funds without detection.
The voice note claims criminals are exploiting the tap-and-go facility and stealing 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 further claimed that fraudsters use these devices to perform as many transactions under R500 as possible until all the funds available in a customer’s account have been used.
Lead Ombudsman for the Banking Division, Nerosha Maseti, said the NFO has yet to deal with a complaint regarding this specific modus operandi.
Her office has, however, dealt with complaints relating to tap-and-go transactions done with customers’ cards after they have been lost or stolen.
She advised customers to immediately report lost or stolen cards to their banks to avoid potential losses.
“Banks set limits on NFC payments done 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 would be required to complete the transaction,” said Maseti.
The Ombudsman for Banking Services, now the Banking Division of the NFO, previously confirmed receiving numerous NFC fraud-related complaints that were investigated by the office related to smart devices.
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.
“Improved customer experience and convenience are some of the biggest benefits, according to banks, of the tap-and-go functionality.
“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 to always be aware of the possibility of fraud and to remain ever vigilant and cautious with their bank cards and card details,” said Maseti.
Maseti encouraged any banking customer who may have fallen victim to fraud or any scam, and who has not been assisted by their bank, to lodge a complaint with the NFO.
For more information, visit www. nfosa.co.za
Cape Times