The dark side of Tap-and-Go on Black Friday
In the ever-evolving landscape of modern commerce, the convenience of tap-and-go payment systems has become an undeniable allure for consumers in Kenya and across the world.
The prospect of liberating oneself from the challenges of carrying a traditional wallet, replaced by the sleek efficiency of a simple card swipe or smartphone tap, epitomizes the swift progress of digital transactions. Yet, as the world hurtles towards an era where contactless purchases are projected to more than quadruple by 2027, the shadow of convenience unveils a tale of risks lurking beneath the surface.
This significant growth in contactless purchases will mainly be driven by payment-enabled mobile devices, such as smartphones and smartwatches. “As we approach 2024, it is clear that contactless payments are more than a trend; it has staying power,” says Anna Collard, SVP Content Strategy and Evangelist at South Africa-based cyber security firm KnowBe4 AFRICA.
However, while the convenience of not needing to carry a wallet is undeniable, consumers should know the specific risks associated with contactless payments, especially with Black Friday deals and holiday shopping offers increasingly taking centre stage.
“Contactless payments have soared in popularity, transforming the way we pay for goods and services. With the tap of a card or a smartphone, consumers can complete transactions quickly and effortlessly,” explains Collard. From grabbing a cup of coffee to buying groceries or fueling up your car, contactless payments have seamlessly woven into the fabric of consumers’ everyday routines.
How secure is this type of payment?
“Apple Pay and Google Pay are relatively secure contactless payments using their own combinations of passcodes, encryption, fingerprint- or facial-recognition technology,” explains Collard. “They have invested into ensuring you can protect your device and your accounts as effectively as possible. However, if you break the chain—use third-party apps, click on phishing messages, fall for scams—then these protections fall away and your device becomes vulnerable.”
The concern of losing your phone or someone gaining access to your passcode is a significant worry. In such instances, unscrupulous individuals can misuse your device to make unauthorized contactless payments. It is crucial to remain vigilant and implement measures to protect your personal information.
“Let me give you an example. You receive a text message that looks like it is from Apple Pay or other mobile payment apps. The message claims there is an issue with your account and asks you to confirm your login details by clicking on a link. The catch is, it is all a scam. When you enter your information, the fraudsters get access to your account. They could then make unauthorized transactions against your credit card, making it incredibly difficult for you to get your money back.”
Although contactless payments are commonly linked with smartphones and smartwatches, traditional bank cards also feature tap-and-go technology. Nevertheless, employing bank cards for tap-and-pay transactions carries its own array of risks.
“Fraudsters may attempt to skim or clone your bank card to gain access to your funds. Skimming happens when they use sneaky devices on real payment terminals to steal your card information. Cloning involves making fake cards with all your card details,” explains Collard. “When you are shopping at speed to catch the best Black November deals, you are distracted, which means it is easy for you not to see a skimming device and just tap your card.”
Read also: Black Friday deals end 14 months of price hikes
Set a strong password
To mitigate the risks linked with contactless payments, adhere to these practical tips:
Set a strong passcode: Opt for a distinctive and strong passcode for your phone or smartwatch. Avoid easily guessable codes. Safeguard your Apple ID or other mobile payment app IDs. Implement two-factor authentication and refrain from sharing your ID password or verification codes with anyone. It’s important to note that reputable entities like Apple, Google, or your banks would never request such information through text, email, or phone calls.
Enable biometric authentication: Use features such as facial recognition or fingerprint scanning to introduce an additional layer of security to your device, ensuring that only you can unlock it.
Keep your devices in close proximity: Ensure that your phone or smartwatch is always with you, avoiding leaving them unattended. Exercise caution when lending them to others.
Frequently check transactions: Maintain vigilance by routinely examining your bank statements. If you come across any suspicious transactions, promptly report them to your bank.
Adjust tap-and-go limits: Modify the tap-and-go limit on your card, a task easily accomplished through your banking app. By necessitating a PIN for larger amounts, you enhance the security layers safeguarding your funds.
Exercise caution with your card: Ensure your bank card is always stored in a secure place, such as a wallet or cardholder. Refrain from sharing your PIN with anyone.
“Tap-and-go payments are incredibly convenient, but it is important for consumers to understand the potential risks involved,” Collard concludes. “By understanding the security measures in place, being cautious with personal information, and following practical tips for protection, you can safely enjoy the ease of contactless payments during Black Friday shopping without worrying about falling victim to fraud.”
