The holiday season is a time for booming sales, and unfortunately, cunning scammers looking to exploit you. As a POS operator or merchant with a POS device, you’re a prime target for fraud during this busy period, and falling victim could cost you your hard-earned profits. But don’t worry, with the right precautions, you can outsmart these fraudsters. Let’s talk about some common holiday scams you might encounter and how you can protect your money from scammers.
Update on POS Fraud In Nigeria
According to the Fraud and Forgeries Report in Nigerian Banks for Q1 of 2024 by the Financial Institutions Training Centre (FITC), POS fraud cases surged by 31.12% over 3,518 POS fraud related cases.
The reports shows an alarming rise in fraud cases and you need to do everything to protect yourself and your business
Here are some common Holiday scams you need to take note of;
1. Payment Alert Scams
Scammers often use fake payment alerts to convince you a transaction has been completed. They might show you a “proof of payment” screenshot, but in reality, no money has entered your account. If you fall for it, you might end up losing your money.
How to Protect Yourself:
- Always verify payments directly through your POS system or a trusted app like MyBiz.
- Never release goods or services until you’ve confirmed the payment.
2. POS Device Tampering
Leaving your POS device unattended can open the door to device tampering. Fraudsters may install skimming devices to steal card details or reroute payments to their own accounts.
How to Protect Yourself:
- Inspect your POS device daily for signs of tampering, such as loose wires or unfamiliar attachments.
- Never leave your POS unattended, especially during busy periods.
- Lock your device when it’s not in use, and install cameras(if possible) in your business for added security.
3. The Triangle Scam
This holiday scam is becoming more common. For instance, a fraudster uses a stolen card on your POS. The payment seems to go through, but when the real cardholder reports the fraud, the transaction is reversed. You may end up losing both the money and the product.
How to Protect Yourself:
- For large transactions, request a valid ID such as a National Identity Number or driver’s license and ensure the name matches the cardholder’s name.
- Always cross-check identification before completing the sale.
4. OTP and PIN Holiday Scams
Scammers often pose as bank officials to trick your staff into sharing sensitive information like OTPs, PINs, or passwords. Once they have access, they can clear the money in your account within minutes.
How to Protect Yourself:
- Educate your team to never share sensitive information, even with someone claiming to be from the bank.
- Remind your staff that no bank or payment platform will ever ask for such information over the phone or in person.
5. Refund Fraud
Some scammers may claim they were overcharged and demand a refund. Without proper verification, you could refund money for a non-existent error.
How to Protect Yourself:
- Always review your transaction history before issuing refunds.
- Insist on proof of the original transaction, like a receipt, before processing any claims.
6. Use Secure Payment Platforms
To minimize holiday scams, use a trusted payment systems like MyBiz, which offer real-time alerts and enhanced security features. Secure platforms also make it easier to track transactions and handle disputes.
Bottom line
The holiday season is prime time for scammers, but you can stay one step ahead by being proactive and vigilant. Remember, scammers rely on you being too busy to notice their tricks.
Don’t give them the chance! Protect your business, stay alert, and enjoy a prosperous holiday season!
What’s your go-to tip for staying safe during the holidays? Share your advice in the comments—we’d love to hear from you!