Azra Hoosen | ah@radioislam.co.za
31 October 2024 | 09:00 CAT
3 min read

As the festive season approaches, the Banking Ombud is warning the public about the risks associated with tap-and-go cards, which could be exploited by criminals during the shopping rush. Tap-and-go transactions, which allow purchases up to R500 without a PIN, are convenient but pose a heightened risk if cards are lost or stolen.

Complaints received by the National Financial Ombud Scheme (NFO) include cases of fraud using lost or stolen tap-and-go cards, although no confirmed reports exist of money being taken via scanning devices. Recent voice notes circulating in South Africa have raised concerns over criminals using near-field communication (NFC) devices to steal funds or card data by tapping through wallets or clothing. While NFO’s Lead Ombudsman, Nerosha Maseti, acknowledges these reports, no formal complaints of this nature have been logged.

“We haven’t seen that specific modus operandi in our space. We are aware of the voice note, but we mainly see lost or stolen cards,” she told Radio Islam.

Tap-and-Go offers convenience and enhances customer experience, but it also comes with notable security concerns. “In our space, what we are seeing is a lot of customers reporting lost or stolen cards and then they find these unauthorised transactions appearing on their statements, and they don’t know how it happened. Then when we investigate it, we realise it was a Tap-and-Go facility that was utilised there,” she explained.

Maseti emphasised the importance of customers contacting their banks immediately if their cards are lost or stolen, noting that many customers may be unaware their card has this feature, allowing transactions via tap without a PIN.

She explained that these fraudsters are highly sophisticated and adapt quickly to advances in banking security, often targeting customers during the busy shopping season when vigilance may be lower. “It is necessary, now that we are seeing a trend in that space, that is important to create awareness around this issue and inform banking customers about the dangers and how to be cautious when shopping this season,” she stated.

Maseti’s stressed that the more information you provide, the better; if your card is compromised or stolen, it’s essential to inform the bank that you have a virtual card loaded on a platform or a digital wallet. This enables the bank to shut down all platforms, preventing any unauthorised third-party access.

Maseti advises customers to keep tap-and-go cards secure. It’s essential to keep control of your card and PIN, understand the terms and conditions, and know your transaction limits. Enable SMS notifications on your phone to monitor transactions and quickly spot any unauthorised activity, putting you in a position to contact the bank immediately. You can also choose to opt out of the Tap-and-Go function if you prefer added security. Staying vigilant, especially in malls, and safeguarding your banking information is crucial during this season.

Customers who experience fraud and are not assisted by their banks are encouraged to file complaints with the NFO.

LISTEN to the full interview with Ml Sulaimaan Ravat and Nerosha Maseti, the Lead Ombud of the Banking Division, here.