With the festive season fast approaching, financial authorities are issuing urgent warnings to South African consumers about the rising risk of tap-and-go card fraud. The convenience of making PIN-less purchases up to R500 has also created a new opportunity for criminals, particularly through the use of lost or stolen bank cards. Shoppers are being urged to stay vigilant as they head into the busiest shopping period of the year.
Rising Complaints Spark Public Concern
The Office of the Banking Ombud has noted a significant increase in complaints related to fraudulent tap-and-go transactions. These incidents primarily involve cards that have been physically lost by or stolen from their owners.
“We have received complaints about tap-and-go transactions conducted with cards that had been lost or stolen,” confirmed Nerosha Maseti of the National Financial Ombud Scheme (NFO). This highlights that the most immediate threat isn’t from high-tech scanners but from simple, opportunistic theft.
While tap-and-go cards are designed with a safety feature that requires a PIN after a certain number of low-value transactions, a thief can still make several purchases before this limit is reached. Customers should remain vigilant and report any suspicious activity immediately.
Fact from Fiction: Unpacking the NFC Scanning Scare
A voice note circulating on social media has caused widespread alarm among South Africans. The message claims that criminals are using portable point-of-sale (POS) devices to steal money by simply holding them near a person’s wallet or handbag, a method known as NFC scanning.
However, Nerosha Maseti has clarified the situation, stating that this specific type of fraud has not yet been reported to the NFO. While the fear is understandable, official complaints do not support this particular modus operandi. Instead, past cases of NFC-related fraud involved criminals linking stolen card details to their own smart devices, like phones and watches, to make payments.
How to Protect Yourself from Tap-and-Go Fraud
The NFO emphasizes that consumer awareness is the first and most effective line of defense against payment fraud. By taking a few simple but crucial steps, you can significantly reduce your risk of becoming a victim.
Being proactive is key to protecting your finances, especially during the busy holiday season when you might be more distracted. The NFO and banking institutions recommend the following actions:
- Report Immediately: The moment you notice your card is missing, contact your bank to have it blocked. Time is critical in preventing unauthorized transactions.
- Monitor Transactions: Make a habit of checking your account statements frequently for any activity you do not recognize.
- Consider Disabling the Feature: If you rarely use the tap-and-go function or are concerned about its security, you can deactivate it through your banking app or by calling your bank.
Enabling transaction notifications on your phone is another powerful tool. These real-time alerts can help you spot fraudulent activity the second it happens.
What Banks are Doing to Keep You Safe
South African banks are actively working to balance the convenience of tap-and-go payments with robust security measures. One of the primary safeguards is the implementation of transaction limits, which cap the amount of money that can be spent via tapping within a certain period.
It’s essential to understand these limits and how to manage them. Knowing your bank’s policies on tap-and-go payments helps you stay in control of your account’s security.
Table: Tap-and-Go Transaction Limits by Bank
| Bank Name | Daily Transaction Limit | Monthly Transaction Limit |
|---|---|---|
| First National Bank | R2,000 | R10,000 |
| Standard Bank | R1,500 | R8,000 |
| ABSA | R2,500 | R12,000 |
| Nedbank | R2,000 | R10,000 |
| Capitec Bank | R1,000 | R5,000 |
In addition to these limits, financial institutions are continuously upgrading their security systems. Innovations like biometric authentication and advanced encryption are being developed to provide stronger protection against evolving criminal tactics.
Frequently Asked Questions about Tap-and-Go Fraud
What is tap-and-go fraud?
Tap-and-go fraud occurs when an unauthorized person uses your contactless bank card to make purchases without your permission. Currently, the most common method involves using a lost or stolen card to make multiple low-value transactions that do not require a PIN.
Can criminals steal money by scanning my card in my pocket?
While this is a common fear, especially due to a viral voice note, the National Financial Ombud Scheme (NFO) has stated they have not received any official complaints of this specific tactic occurring in South Africa.
What should I do first if I lose my card?
You should contact your bank immediately to report the card as lost or stolen. This will allow the bank to block the card and prevent any further fraudulent transactions from being made.
How can I monitor my account for fraud?
Regularly check your bank statements online or through your banking app. You should also enable transaction notifications or SMS alerts, which will inform you every time a transaction is made on your account.
Can I turn off the tap-and-go feature on my card?
Yes, most banks allow you to disable the contactless payment feature. You can usually do this through your mobile banking app or by contacting your bank’s customer service center.
