Tap-to-pay technology offers undeniable convenience, but it’s been a target for scams recently in South Africa! Beware and find out how to avoid becoming a victim!

The “tap-to-pay” technology offers undeniable convenience, but unfortunatelly this kind of payment can expose consumers to risks, as seen recently in South Africa, where criminals are targeting people who use this feature on their cards for payments.

This scam relies on near-field communication (NFC) technology. When you tap your card on a contactless payment terminal, your device transmits your payment information to the terminal for processing. Criminals use specialized NFC readers to steal this data while you’re nearby, potentially in crowded spaces like gas stations or public transport.

“Imagine you’re paying for petrol and someone is standing near you. They’re talking on their phone, it’s completely normal. Nothing to worry about, right? Well, until you tap the Point of Sale device with your card, that is. As you tap, that person taps your card, and the money comes off twice – once for the petrol and once for the fraudster. It’s an incredibly easy scam to perpetrate as well. All you need is a credit card machine in your pocket, and you can take any amount you want from someone’s card”, says Richard Frost, Product Head at Armata – a cybersecurity company.

An alarming issue is that many cards lack spending limits for tap transactions, allowing sizable amounts – such as R10,000 or more – to be charged in one go. However, larger transactions usually require bank verification via SMS, which can prevent someone from becoming a victim of this scam. Some banks even allow customers to disable the functionality in their cards, which is the best way to make sure your really safe, according to Frost.

“Disable the function and keep your card as a backup, somewhere safe where nobody can find it. Only use it when you have to insert it into a machine and use your PIN. The best option is to use your mobile phone with a virtual card or one of the digital wallet payment services like Google Pay or Apple Wallet. Your mobile phone has more security, and when you tap it, the phone will only allow the amount to come off once. After that, any additional taps will fail, which will prevent this type of fraud from happening.”, says Frost.

Frost also advises minimizing tap amounts on mobile devices and securing banking apps in a private folder to prevent potential threats. Armata suggests using chip and PIN for bigger purchases and mobile devices for quick tap-and-go transactions. Also, make sure to avoid crowded areas, and opt for authentication-enabled payment solutions whenever possible.

How to Protect Yourself

• Be Wary of Crowds: when making tap payments, especially in crowded areas, be aware of your surroundings. If someone seems unusually close, opt for a different payment method;
• Utilize Mobile Wallets: mobile wallets like Apple Pay and Google Pay offer an extra layer of security. These platforms require fingerprint or facial recognition for authorization, making it harder for criminals to steal data;
• Don’t Be Afraid to Insert: if you’re uncomfortable using tap-to-pay in a particular situation, don’t hesitate to insert your card and enter your PIN. This adds a crucial security step that stops scammers;
• Set Up Alerts: most banks offer SMS or email alerts for transactions exceeding a certain amount. This allows you to be notified immediately of any suspicious activity;
• Report Immediately: if you suspect your card has been skimmed, report it to your bank immediately.

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