Nigerians are always looking for ways to make their daily doing simpler, and this also applies to their financial life. Contactless payments are one of the innovations that facilitate more seamless transactions between Nigerians and their international companions. If this means of payment becomes the norm, there will no longer be a need to anxiously carry cash around or deal with broken POS terminals. Just tap your card or phone, and you have made your purchase.
However, there is no helpful innovation that does not have fraudulent activity following quickly at its heel, and contactless payment is no different. So, this convenience brings with it a major question: how safe is the Nigerian financial landscape with contactless payments in tow? As more Nigerians adopt this system of payment, fraudsters are also getting smarter.
In light of this, here are the risks of contactless fraud in Nigeria and what people can do to protect themselves.
How Do Contactless Scams Work?
The major advantage of contactless payment is the speed at which it facilitates transactions. While this quickness is something to commend, it is the precise reason why scammers can swindle so many. Here are some common scams used to steal money through this means of payment:
1. Card Cloning Through Digital Wallets
You don’t need to lose your card for scammers to steal from you. If someone gets hold of your card details, they can add it to their digital wallet and start making payments without a physical card.
2. The “Ghost Tap” Scam
Hackers can remotely load stolen card data onto their phones and make transactions as if they were using a real card. To avoid triggering fraud alerts, these transactions are only made in small amounts, and as such many victims do not even notice until it’s too late.
3. NFC Skimming: The Digital Pickpocket
Contactless cards use Near-Field Communication (NFC) to process payments. Unfortunately, if a scammer has an NFC reader, they can intercept a buyer’s card details simply by standing close to them.
This is rare but possible, especially in crowded places.
4. Social Engineering & OTP Theft
The scariest fact about these sorts of scams is many do not require intricate or complicated hacking techniques. The OTP theft method, for instance, tricks people into giving away their One-Time Passwords (OTPs) over the phone or via phishing links. Once a cardholder’s OTP is acquired, hackers can approve payments from their account.
How Secure Are Contactless Payments in Nigeria?
Thankfully, banks and payment providers are not ignorant to the persisting dangers. Here are some of the protections in place:
- EMV Chip Technology: Nigerian banks use EMV chips to encrypt transactions, making it harder to clone cards.
- Unique Transaction Codes: Each contactless payment generates a unique code that can’t be reused, reducing the chances of fraud.
- Bank Liability Policies: In many cases, Nigerian banks are required to refund fraud victims if negligence is on their end.
How to Protect Yourself
While there are external security measures in place, it is always best that people begin personally protecting themselves against any deceit intended for them. Luckily, there are several ways one can safeguard against a contactless payment scam:
- Keep Card Details Private: People should refrain from sharing their card info online or over the phone, no matter who asks.
- Enable Transaction Alerts: People should enable certain settings to ensure they get notified of every transaction so they can act fast if something seems off.
- Use Strong Authentication for Mobile Wallets: People should set up biometrics or a strong password for all their digital wallets.
- RFID-Blocking Wallets: These prevent unauthorized NFC scanning of your contactless card.
- Stay Updated on Scams: Fraud tactics evolve, so people should stay alert for new tricks scammers are using.
The Verdict: Is It Worth the Risk?
Contactless payments have made their mark, and this advantageous feature does not seem to be going anywhere anytime soon. Like all innovations, there is always a certain risk involved in indulging them, so to say contactless payments are not worth the hassle for the dangers involved is to negate the usefulness of all rising or fixed innovations.
The trick is not avoiding it all together, but knowing how to use them safely. By staying informed and taking a few precautions, people can enjoy the convenience without becoming a victim.
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