As the festive season approaches, consumers are being urged to remain vigilant against fraudsters exploiting the convenience of tap-and-go cards.
These bank cards, which allow for purchases up to R500 without requiring a PIN, have become a target for criminals seeking to make fraudulent transactions.
The National Financial Ombud Scheme (NFO) has raised concerns over increasing fraud risks, urging customers to take extra precautions during the holiday shopping period.
Tap-and-go bank cards, also known as near-field communication (NFC) cards, are designed to make shopping faster and more convenient. This ease of use though has been a boon for criminals.
According to banking division lead ombud Nerosha Maseti complaints have been received of tap-and-go transactions conducted with lost or stolen cards.
While there have been no reports of fraudsters using scanning devices to siphon money directly from cards, as suggested by a viral voice note circulating in South Africa, the NFO remains concerned.
Maseti emphasised that while banks set limits on tap-and-go transactions to reduce the risk of large fraudulent purchases, it is crucial for consumers to remain cautious.
“Banks set limits on NFC payments to minimise fraud risk and once those limits are reached a PIN is required to complete further transactions,” she explained.
Some people however may be concerned after voice notes warning that criminals are exploiting the tap-and-go feature by using unauthorised devices to steal money from a person’s bank account without detection.
These voice notes warn that fraudsters could simply tap their devices close to a person’s wallet, clothing or handbag to steal funds until the card's daily limit is reached.
Despite the widespread circulation of the voice notes, the NFO say they have not received any complaints involving fraud from this specific type of scanning device.
“We have not yet dealt with a complaint regarding this specific modus operandi as detailed in the voice note. However, we have received complaints about tap-and-go transactions involving lost or stolen cards,” said Maseti.
Maseti said there are concrete steps consumers can take to safeguard their cards. One of the most effective ways to protect against fraud is to immediately report lost or stolen cards to the bank.
Consumers should also consider deactivating the tap-and-go functionality if they feel uncomfortable with the risk, as many banks now offer the option to disable this feature via their banking apps.
“Some banks allow their customers to disable the tap functionality. Customers can also set daily and monthly limits for tap-and-go transactions or opt for requiring a PIN for all transactions, regardless of the amount.”
She recommended customers always keep their cards and PINs secure, avoid sharing them with others and stay aware of their bank’s terms and conditions regarding the tap-and-go facility.
The NFO encourages those who fall victim to fraud or any other scam and are unable to resolve the issue with their bank to lodge a complaint. Its banking division will investigate all complaints at no charge and ensure consumers are treated fairly by their banks.
TimesLIVE
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