Soon, many of us will enjoy well-deserved holidays, spending time with friends, family, and our favourite distractions. Unfortunately, criminals take advantage of our relaxation. While we lower our guard, they pounce, lifting wallets and stealing cash.
Fortunately, SA’s rapid adoption of cashless options makes it harder for criminals. According to the South African Banking Risk Information Centre (SABRIC), there has been an 18.4% decrease in card fraud. More people use contactless payments, virtual cards, instant payments, and security measures such as one-time pins, making it harder for criminals to get their hands on our money.
South Africans are fans of digital payments, especially online payments and cashless payments. Ninety-five percent of the nation has used at least one digital payment method during 2021, with many transacting through their phones (Mastercard’s New Payments Index 2022).
The pandemic period made online shopping and tap-to-pay a common practice, and more banks offer virtual cards through their banking apps. Scan-to-pay services using QR codes and cardless withdrawals make it easy to pay and tip others. Even credit cards now feature insurance cover and anti-fraud features that discourage thieves.
Cashless transactions keep our money safe over the holidays. Rather than carry cash, consumers can pay virtually, and if they do need cash, there are easy and safe options such as till withdrawals at major retailers. Even if someone’s wallet goes missing, they will have options on their phone, and if they lose their phone, they still have options.
Staying cashless safe during the holidays
Cashless payments deter criminals. Here are safety tips to help your holiday go smoothly without worrying about your wallet disappearing as advised by Contactable. Contactable enables the journey of digital identity, onboarding and KYC processes.
Keep a separate card with a limited balance: Many banks now offer virtual cards and inexpensive debit cards. Use these to make holiday and online purchases, transferring money from your main bank account. Keep the amounts small so that if the card is compromised or lost, it won’t affect your main bank account.
Assign beneficiaries to the account: What if you lose your phone and wallet? Some bank accounts and cards let you assign beneficiaries who can do things like authorise cardless withdrawals. For example, if a relative has this access, they can quickly help you access funds in an emergency.
Activate MFA on your phone and account: Multi-factor authorisation (MFA) is when your bank sends a pin or authorisation request to your phone. It deters criminals, and most banks automatically add MFA features to sensitive transactions. You can also add extra security to your banking app by using your fingerprint for authorisation.
Set lower transaction alerts: Some criminals will try to steal small amounts that don’t generate payment alerts. Several banking apps have an option to alert you of all transactions. Turn this on to monitor for illicit transactions (and it can help you from overspending!).
Only use trusted payment apps: Payment apps are great for consolidating all your transactions in one place. However, many third-party apps are not as honest as they seem and may try to steal your banking details. Only use payment apps you know you can trust. Some banking apps can add third-party payment providers such as Zapper, Yoco, and SnapScan.
Don’t use public WiFi for banking: When using online banking, avoid using public WiFi or hotel WiFi, as criminals can intercept them. Some banking apps often have encryption, making them safer on public networks, but check with your bank to make sure. If in doubt, use your phone’s mobile broadband, which is much harder to intercept. You can still use public WiFi for other online things, but only use a secure connection when accessing your bank account.
Know your bank’s USSD code: All the major banks provide a USSD service, meaning you can access banking services by dialling *120* plus the bank’s specific number on your phone. The benefit of USSD is that it will work on any phone, and if you are out of airtime, some banks offer free access to their services through the *130* USSD code.
Notify your bank of travel: If you plan to travel this holiday season, notify your bank. Otherwise, it might block your transactions, thinking they are fraudulent. Also, check your options if you need to access your banking or replace cards, especially if you are travelling abroad.
Cashless transactions can keep us safer during the holidays, ensuring that criminals don’t rob us of our hard-earned money and relaxation. Having a little cash on hand is helpful. But you don’t need to carry any cash if you don’t want to. Thanks to cashless payments, you can treat yourself and others, not the criminals.