Are 'tap and go' cards safe? Maybe, suggests this case involving Standard Bank
Do “Tap n Go” bank cards make you more susceptible to fraud?
Do you need to get a “radio frequency ID” (RFID) blocking wallet or handbag to stop criminals from stealing your bank card details by using “radio waves” while standing next to you?
There are many scary videos on YouTube showing a man stealing someone’s credit card details by getting close to them in a shopping centre.
These videos are staged, says consumer journalist Wendy Knowler.
You needn’t fear – handsfree pickpocketing is a myth and RFID wallet makers have yet to produce evidence of a single RFID crime.
Holding a point-of-sale device near a bank card only produces a card number and expiry date.
The CVV and PIN stay hidden.
South African banks have used RFID credit and debit cards for some time. You can identify them by the Wi-Fi-type symbol on them.
Consumers in South Africa cannot insist on using PIN-enabled cards only.
The South African Banking Risk Information Centre (Sabric) says that contactless payment cards are as secure as traditional cards and that it hasn’t received any reported crime incidents where “tap and go” cards have been exploited.
You can only “tap” a pre-determined number of low-value transactions on any specific day, after which you need to enter a PIN to complete the transaction.
The limit imposed by the Payments Association of South Africa is R500 per “tap”, meaning the financial reward associated with “tap” transactions is low.
A case study:
A thief stole Veronica McGregor’s (she’s from Durban) handbag with her card from her boot and tapped away to the tune of R5800.
The criminal bought alcohol at a series of bottle stores - all part of the same supermarket chain.
At a limit of R500 per tap, that’s about 12 purchases and a lot of driving around to different bottle stores.
I was not even aware that my card had that tap functionality.Veronica McGregor
Standard Bank investigated and offered her a refund of 50% of her R5800 loss.
The bank gave her five days before they would withdraw the offer.
Unsurprisingly, she didn’t think that was fair.
Knowler took up the case with Standard Bank, arguing that the fraud would not have taken place had a PIN been requested.
It is fair to say, according to Knowler, that the functionality – which she didn’t request, consent to or ever use herself - was the direct cause of her losses.
How then did Standard Bank justify an offer of 50% as opposed to the full amount of her losses, Knowler asked.
Standard Bank’s response:
We have assessed this matter carefully and found that the decision that was made to offer Ms McGregor 50% only was not made taking into account all the facts. We should have offered a 100% refund as the transactions were performed offline without the use of a PIN using Tap and Go. We apologise for the inconvenience and obvious distress that this matter has caused. Ms McGregor will be refunded in full.Standard Bank
All our credit cards are issued with the contactless capability and this has been very well received by customers and merchants due to the increased convenience and security associated with cards not leaving customer’s hands anymore. Adoption rates have ramped up significantly during 2019 with merchants driving adoption by not taking customer’s cards anymore to complete transactions. In more mature markets like Australia, more than 90% of transactions have migrated to contactless and they have experienced a very significant reduction in counterfeit card fraud. Our cards have a variety of security parameters embedded on the chip like cryptograms which protects customers against fraudsters.Standard Bank
For more detail, listen to the Knowler in the audio below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
This article first appeared on 702 : Are 'tap and go' cards safe? Maybe, suggests this case involving Standard Bank
Source : https://cdn.pixabay.com/photo/2016/08/10/15/01/credit-card-1583534_960_720.jpg
Impersonation fraud has increased by a massive 337%. Consumers have been warned to protect their personal information.Read More
Lay-by allows you to choose an item and then pay it off every month, interest-free, explains consumer journalist Wendy Knowler.Read More
A financial expert has warned locals not to fall for a pyramid scheme known as Divine Prosperity Blossom that has sprung up in Cape Town.Read More
Heather John says she was not paid for a guest booking at her holiday apartment but MD apologises and she has now been paid.Read More
Covid-19 restrictions around the world have led to the huge popularity of online supermarket shopping, but there's a catch.Read More
ConsumerTalk consumer journalist Wendy Knowler says the 'basket of goods' comparison has a number of flaws.Read More
If your phone gets stolen, call your bank right away. Your accounts can be raided.Read More
A Cape Town woman has been left with serious lung damage after her ozone therapy session went wrong. A medical doctor weighs in.Read More
Unwanted charges on your cell bill? Struggling to unsubscribe from rogue content services that you never signed up for? Here's what you can do.Read More
Hand sanitiser has become a highly sought-after product amid the coronavirus pandemic. But are all of them effective? Wendy Knowler investigates.Read More
Wendy Knowler, Consumer Ninja, investigates non-payment of business interruption claims during the Covid-19 lockdown.Read More
The Ombud for Short Term Insurance’s aim is to resolve short term insurance complaints ''fairly, efficiently and impartially''.Read More
Wendy Knowler, consumer Ninja, on the small print and pitfalls of credit life insurance.Read More
The annual banking ombuds report has been released. Were they good, were they bad; how many complaints have been received?Read More
It seems many credit life claims are being rejected. Here are nine companies that were named and shamed in a new report.Read More
This edition of Consumer Corner looks at how lay-offs, closures and quarantine will impact people's income and ability to repay debt.Read More
Wendy Knowler, consumer Ninja, has a horror story about insurance policies being cancelled - by sms.Read More
Hundreds of small businesses which fell prey to a phone directory listings scam, should relax and read here.Read More
Wendy Knowler, consumer journalist, on Nedbank's early debit orders.Read More
Wendy Knowler, consumer journalist, on the importance of carefully reading your documents when you buy assets.Read More
Consumer Ninja, Wendy Knowler, on payment holidays from banks in which you get a break from interest and repayment of debt.Read More
Wendy Knowler, consumer journalist, this week talks about the frustrations online shoppers in South Africa have to deal with.Read More
Wendy Knowler, consumer journalist, on how to safeguard your phone - most importantly - the banking details on your phone apps.Read More
Wendy Knowler looks into the practice of many banks and corporates of “unilaterally” activating an early debit for December payment.Read More
In South Africa, Black Friday has become a spend-fest of epic proportions, says consumer journalist Wendy Knowler.Read More
Consumer journalist Wendy Knowler investigates after a poor family’s desperation to get a claim paid made headlines.Read More
Did someone steal your phone? Contact your bank without hesitation warns consumer journalist Wendy Knowler.Read More
Made a mistake when paying by EFT? You're going to battle to get your money back, warns consumer journalist Wendy Knowler.Read More
Consumer journalist Wendy Knowler explains how to get reimbursed if you can’t travel after a failed visa application.Read More
Wendy Knowler says dealerships don’t do much to explain how you may unknowingly void your warranty and service/maintenance plans.Read More