Beware of Tap-and-Go scams: Bank card users warned

Bank card users are being urged to remain vigilant as fraudsters increasingly exploit the tap-and-go function on cards and phones for unauthorized transactions. This warning comes from the National Financial Ombud Scheme, which highlights the importance of understanding how this technology works to protect oneself from potential scams.

How Does Tap-and-Go Technology Work?

The tap-and-go feature relies on NFC (Near-Field Communication), a short-range wireless connectivity technology. Nerosha Maseti, a representative of the National Financial Ombud Scheme, explained the mechanics of NFC:

“NFC stands for near-field communication, and it is basically a short-range wireless connectivity technology that uses magnetic field induction to enable communication between devices.”

This technology enables quick and seamless transactions by allowing devices to communicate when they are brought close together—typically within a few centimeters.

Applications Beyond Banking

While NFC is widely used for tap-and-go payments, its applications extend far beyond banking. Maseti elaborated on the versatility of NFC:

“When they touch together or are brought within a few centimeters of each other, this includes authenticating credit cards, enabling physical access, and transferring small files. Basically, enabling NFC on your phone allows you to make touchless payments using your device.”

This functionality is increasingly popular in modern technology, enabling convenience in various fields, including access control, data sharing, and cashless payments.

How Fraudsters Exploit NFC Technology

Despite its convenience, NFC technology has vulnerabilities that fraudsters may exploit. To conduct an unauthorized transaction, a card machine or device equipped with NFC technology must be brought very close to your card or phone—often without the user noticing.

Fraudsters might use this method in crowded areas, such as shopping malls or public transportation, where individuals are less likely to notice a brief interaction with their cards or phones.

Tips to Protect Yourself from NFC Fraud

To minimize the risk of falling victim to tap-and-go fraud, consider the following tips:

1. Monitor Your Bank Statements
   Regularly check your bank and credit card statements for any unauthorized transactions. Early detection allows you to report the issue promptly.
2. Use Protective Cardholders
   Invest in RFID-blocking wallets or card sleeves that prevent unauthorized NFC communication with your cards. These products create a barrier that fraudsters cannot penetrate with NFC-enabled devices.
3. Disable Tap-and-Go Features When Not in Use
   If your card or phone allows it, disable the tap-and-go function when you’re not using it. This precaution reduces the risk of unauthorized transactions.
4. Enable Payment Alerts
   Many banks offer real-time alerts for transactions. Enabling this feature can help you immediately spot and address any fraudulent activity.
5. Be Mindful in Public Spaces
   Pay extra attention to your belongings in crowded areas. Fraudsters often target individuals in such settings, as it is easier to carry out unauthorized transactions unnoticed.
6. Set Transaction Limits
   Some banks allow you to set spending limits for contactless payments. Lowering these limits can reduce potential losses in the event of fraud.

What to Do If You Suspect Fraud

If you believe you’ve been a victim of tap-and-go fraud, take the following steps immediately:

• Contact Your Bank: Notify your financial institution to block your card and investigate the suspicious transaction.
• Report the Fraud: File a complaint with your bank and request a refund for the unauthorized charges.
• File a Case with the Ombud Scheme: If you’re unsatisfied with the bank’s response, escalate the issue to the National Financial Ombud Scheme for resolution.

The Bottom Line

While tap-and-go technology offers unparalleled convenience, it also comes with risks that users need to be aware of. By understanding how NFC works and adopting preventative measures, you can reduce the likelihood of falling victim to fraud. Stay vigilant, protect your financial information, and report any suspicious activity immediately to safeguard your finances.

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