NFC digital e-wallet fraud South Africa.

NFC e-wallet fraud South Africa.

Scammers load your banking profile on a smart device that does not require an OTP security validation for purchases.

Scammers use the stolen information from your bank card to make purchases on payment platforms like Samsung Pay, Apple Pay, Google Pay by loading your banking profile on their smartphone or smartwatch which does not require an OTP security validation for purchases. A digital wallet, electronic wallet, e-wallet or mobile wallet is an online payment tool that serves as an electronic version of a physical wallet.
Digital e-wallet transactions account for over 5o% of e-commerce transactions globally

Abbreviations. 

OTP: A one-time password or a one-time PIN, is a one-time authorization code that is valid for only one login session or transaction on a digital device.

NFC: Near-field communication is a short-range wireless connectivity technology protocol that enables communication between NFC enabled electronic devices of a distance of 4 cm or less.

POS: Point of Sale or point of purchase place where a customer executes the payment for goods or services moreover a POS transaction may occur in person or online.

2FA: 2-factor authentication is a security system that requires 2 separate, different forms of identification in order to access your banking credentials.

 

NFC e-wallet fraud.

NFC e-wallet fraud is called Card-not-present fraud as NFC digital e-wallet payments do not require the OTP security validation nor your card been present at the Point-of-Sale POS.
Banks instituted fraud detection prevention systems like 2-factor authentication (2FA), SIM swap detection, transaction monitoring to close security exploits however scammers are always one step ahead forcing banks to play catch up to new fraud methods.

NFC fraud increases as the number of cellphones with near-field communication increases due to e-wallet convenience and easy to use. NFC e-wallet fraud-related complaints are increasing 1000% year on year in South Africa.  South African card holders are currently being targeted by a highly organised international criminal network using smart devices in foreign jurisdictions such as Dubai, France and Spain.

Dubai, United Arab Emirates is currently one of Africa’s biggest money laundering hubs with billions and billions of dollars of African wealth laundered in the UAE. Large sums of cash, up to $200million at time are bought into Dubai in suitcases. Most of Africa’s illegal gold is washed here too due lax customs rules, particularly for hand-carried gold or cash.

Dubai hosts countless international scammers like the Gupta brothers, Indian citizens, who were allowed to escape international arrest warrants and extraditions for stealing $4billon from the South African government by the Dubai courts. The UAE is a safe haven for money laundering criminals as the local courts offer protection from extradition as well banks facilitating the large sums of cash an gold through Dubai, all sanctioned by the UAE government.

NFC e-wallet fraud South Africa.

Card-not-present fraud, Scammers load your banking profile on a smart device that does not require an OTP security validation for purchases.

There are a few methods to link an e-wallet to your banking card credentials. Scammers select a random cellphone number and attempt to link the e-wallet to their own smart device. This triggers the safety feature OTP to validate the request or transaction. The scammer will call you to try intercept the OTP by pretending to be from your bank or a legitimate business by calling you with an excuse to attempt to obtain your OTP. Once you give up the OTP this allows the fraudsters to access their eWallets with your banking credentials to make fraudulent purchases without your consent.

Another method employed by Scammers is they will purchase your banking details like, card number, expiry date and the CVV number from fraudulent websites, they then will socially engineer you through using your information that they appear to be legitimate business or bank employee and request your OTP to link your credentials to their smart device. Once validation is approved, the criminal’s device is linked to your bank card, leaving the scammers free to tap their device at point-of-sale with no further security verification required.

Scammers send you an email or text with a seemingly harmless link however the link directs you to a spoofed or cloned website where you login to your account as usual moreover this is not an official website at all. Scammers steal your login information or install malware on your computer or steal your personal data. The text or email request could be as harmless as password change request or you have won a prize.

Tap-and-go or contactless payments is when you tap your card or use your smartphone or smartwatch as a wallet at a point of sale without your card been present nor any forms of security verifications like bank card pin or OTP. Tap-and-go or contactless payments are on the rise due convivence and speed of purchase bypassing any layers of security like 2FA hence the increase in card not present NFC digital e-wallet fraud.

First National Bank FNB NFC E-wallet fraud reporting.

If anyone calls you claiming to be from the bank, and asks you for your OTP or a pin or password of any kind, hang up the phone immediately and report the incident to the bank. We reiterate again that FNB, will never request any security information from you over the phone and you, in turn, should never give out any information over the phone. Please remain vigilant and protect your hard-earned cash at all times. Scammers will deceive victims via phone calls, SMS or emails requiring the victims to replace/renew/upgrade their e-wallet accounts.
Report a fraudulent email, call or message immediately.

Fraud line  South Africa: 087 575 9444
Outside South Africa: +27 11 369 2924
First National Bank Security Centre

Standard Bank NFC E-wallet fraud reporting.

Fraud line South Africa 0800 222 050
Outside South Africa: +27 10 249 0100
Reportfraud@standardbank.co.za
Standard Bank Fraud and Security Centre

Do’s and Don’ts of NFC e-wallet fraud in South Africa.

Don’t allow any linked devices you don’t recognise.
Don’t give anyone your OTP or passwords.
Don’t provide too many details online,
Don’t use public WiFi networks.
Do not log into your personal accounts like social media and you bank accounts over public WiFi.
Don’t download APK files or click links from texts or emails including WhatsApp.
Don’t use suspect websites as they can sell your information to including bank card information. Don’t let your card out of your sight when making payments.

Do use SSL VPN Security.
Do turn off sharing on your phone. Airdrop for Apple and NFC mode for Android.
Do use 2FA two-factor authentication and biometric authentication.
Do update your unique passwords regularly
Do keep your personal information private.
Do look out for spoofed websites with misspelled domain names that appear to be legitimate.
Do verify the authenticity of any request for OTPs by directly contacting the organisation.
Do stay alert when using your cards and making payments.
Do make sure you have received your own card back after every purchase.
Do sign your card on the signature panel.
Do review your account details and transactions