Gone in 60 seconds? Here’s how criminals are targeting tap-and-go cards this festive season

It’s that time of year again when opportunistic criminals embark on their own “shopping spree” using lost or stolen tap-and-go bank cards, as their ease of use makes it an easy win.

This after a report by the National Financial Ombud Scheme (NFO) revealed an increasing risk of fraudulent transactions due to the ease of use of tap-and-go bank cards, also known as near-field communication (NFC) cards.

According to banking division lead ombud, Nerosha Maseti, complaints have been received about tap-and-go transactions — which allow for purchases up to R500 without requiring a PIN — conducted with lost or stolen cards.

Tap-and-go cards: How criminals ‘tap into’ contactless payments

Previously, the Banking Ombudsman explained that NFC technology scams involve fraudsters using stolen bank card information, such as the card number, expiry date, and CVV number, to make fraudulent purchases through digital wallets.

Criminals use 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 Citizen reported earlier this year on fraudsters also using scanning devices to siphon money directly from cards, targeting unsuspecting victims at service stations and till points.

Steps to protect yourself against tap-and-go card fraud

Maseti emphasised the importance of immediately reporting lost or stolen cards to the bank to prevent fraud.

“Customers can also set daily and monthly limits for tap-and-go transactions or opt to require a PIN for all transactions, regardless of the amount,” she added.

Richard Frost, product head from cyber security company Armata, told BusinessTech that the best way to protect your hard-earned savings is to disable your bank card’s tap function or to insert it into a card machine and use your PIN.

Frost added that another option is to rather use your cellphone with a virtual card or one of the digital wallet payment services.

How to lodge a complaint with Banking Ombud

• The Banking Ombudsman 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.

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