Jason Williams 
Fraud From East To West
The increase in debit and credit card usage since the COVID-19 Pandemic has also coincided with a sharp rise in fraud. Credit cards now account for 65.1% of all retail payment volume. NCB, the country’s biggest bank, began rolling out its long awaited Visa Debit Card in 2020. It is good that more Jamaicans are embracing digital payment methods; however, proper security practices are still lacking.
Credit and debit card fraud was the most prevalent type, accounting for “an annual average of just over 69% of the $800Mn of total fraud amounts reported by financial institutions” by the end of 2023. As expected, the majority of these cases occurred in Kingston, Portmore, and Spanish Town.
Let’s dive in as we explore how to conduct transactions safely, both online and offline.
Open An Extra Account
Many people leave all their funds in the account connected to their debit card. This puts them at high risk of losing money to card skimming and cloning. To prevent this, a second account should be opened to ‘store funds’. Money should be transferred to the account connected to your card as needed. This means that if your card gets cloned, the thieves would only have access to a small amount of money.
Definitions:
- Card Skimming: A thief places a hidden device(skimmer) on the ATM or POS terminal to capture the card’s magnetic-track data. This is usually paired with a tiny camera or fake keypad to record your PIN.
- Card Cloning: This happens when stolen card data(from a skimmer, data breach, etc.) is used to create a physical duplicate of the card or to program a card for card-present fraud.
Prepaid Cards
Companies such as NCB, Sagicor, and more have rolled out Prepaid Cards. A Prepaid Card allows you to ‘add funds’ and spend as needed. Let’s say Steve wants to buy 2 Pounds of Flour at the supermarket. He can open an app, transfer money to his Prepaid Card, and the funds are immediately reflected. If that Prepaid Card gets ‘compromised’ then well, the thieves are gone with a couple of dollars.
It is important to note that companies offer Prepaid Cards designed for remittances and financial inclusion. These cards require no bank account and often allow people to top up at selected merchants. The Lasco Gold Prepaid Card and JMMB VISA Prepaid Card are two examples.
Online Transaction Alerts
Several banks allow you to set multiple transaction alerts. You can get notified via email or text about: ATM(Automated Teller Machine) withdrawals, Bill Payee list updates, funds transfer recipient list updates, current account balances, bill payments, transfers, purchases being made with or without cards, and more. Choose a bank that ticks all the boxes for notifications that you deem important.
Benefits of A Credit Card
A debit card puts your money at risk; a credit card puts the bank’s money at risk. Several social media users lamented the bank’s slow response to Debit Card Fraud. When fraud occurs with a credit card, the bank is far more aggressive and responsive in retrieving money. Many people avoid credit cards because they seem risky, but when managed properly, they can be a powerful financial tool.
Also, it’s clear from Twitter that many users look forward to cashback season.
It’s certainly a great tool to have in your arsenal. Ensure that you completely understand the risks of having a Credit Card. Check out these credit card tips from NCB.
ATM and Point Of Sale Tips
Use one hand to enter your PIN and the other hand to block anyone from seeing it. Memorize your PIN(avoid writing it down) and choose a PIN that’s hard to guess.
Check the ATM Keypad to ensure that it isn’t too thick or looks ‘off’. A fake keypad may have been placed on top of the real one.
Before entering your card, gently thug and wiggle the card reader. This should help to ensure no fake card reader is present.
Use an ATM in a well-lit, high-traffic public area. Once you get in, quickly conduct your transaction, secure your cash, and take your receipt. Leaving the receipt in the bin is ill-advised, as individuals may read it. These people might read it for social media content or nefarious purposes.
Insert Vs. Tapping
The straight answer is – tapping your card is safer! Tapping or contactless payment is the safer option because it eliminates the risk of card skimming. It uses a secure, one-time code instead of exposing the card to the physical terminal. For some reason, Jamaicans seem to prefer inserting the card. Next time you visit a local store, inform the cashier that tapping is the safer option!
Remind the store clerks that they don’t need to touch your card.
Avoid Public WiFi
Do not execute banking transactions on public WiFi, such as in hotels, airports, and coffee shops, as this makes you susceptible to a wide range of attacks. In short, your username and password could be intercepted and used by hackers. It is safer to use Mobile Data or a Personal Hotspot when logging into your banking app/website. The image below describes different types of attacks.
Be Careful
Sometimes your instincts are trying to warn you. Always scan your surroundings before using an ATM, and if something feels off, walk away and find another one.
Some areas across the island have a higher risk of card fraud, especially spots near major tourist zones. It’s wise to ask friends, co-workers, and colleagues about restaurants or locations where card fraud is known to happen, so you can avoid trouble before it finds you.
It’s best ot view these card security tips the same way you view securing your home. Adding a couple of dogs, security cameras, and walls doesn’t mean your home is unbreachable. It does, however, reduce the risk of your home being broken into.
Use a combination of different card security tips, and remember to share this article with a friend. The more informed we are as a people, the better. An honorable mention is the RFID Wallet. This wallet blocks radio waves, therefore preventing unauthorised scanning of your contactless credit and debit cards.
Also, don’t forget to review your credit and debit card statements every month. You might find a couple of surprise transactions.
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