I’m sure you’ve watched (and possibly shared) the video where a man successfully makes a contactless transaction via a wireless POS terminal through the back pocket of a stranger. The video has gone viral and has made many jumpy and concerned about contactless payments – specifically NFC chip-embedded Visa payWave and Mastercard PayPass credit card. Is it that easy for fraudsters to steal through this method? Not quite, says the Association of Banks in Malaysia (ABM) and the National Cards Group (NCG) in a joint statement.
My colleagues at SoyaCincau and I stumbled upon this video that’s been circulating on social media and chat channels like WhatsApp. The team debunked the claim yesterday in a video. I suggest you watch it.
Anyway, both ABM and NCG have assured that the video didn’t originate from Malaysia. That’s pretty obvious, given the ethnicity of the man in the video and his straight up Australian accent. The two associations added that such fraudulent activity is unlikely to happen in Malaysia due to the stringent merchant onboarding process employed by banks and financial institutions.
Only registered businesses (thus approved merchants) that have undergone customer due diligence process by the banks or financial institutions are eligible to apply for a POS terminal facility.
So, it is highly unlikely for fraudsters to be able to buy a POS terminal off-the-shelf and go on a “shopping spree.”
Fact: It’s not worth the hassle
Additionally, all transactions made at a POS terminal must be processed by the bank or financial institution. Which also means, all transactions are traceable. That said, it would be silly for legit merchants to want to make unauthorised transactions without your knowledge as this can be traced back to them.
Also, there’s usually a limit per transaction for contactless payments set by the banks or financial institutions – typically MYR250. Any transaction above this limit will require PIN authorisation which is only known to the cardholder. According to ABM and NCG, if you wish too lower your transaction limit or disable contactless payment functionality completely, you can request to do so with your respective banks or financial institutions.
Fact: You’re protected
As long as you keep your payment card secure at all times e.g. do not leave the card or allow another person to use the card, you are protected from any losses suffered arising from fraudulent activities. You can report any loss or unauthorised usage of the card to the bank or financial institution as soon as reasonably practicable.
In a nutshell, making a contactless payment isn’t as easy as tapping one’s butt. And even if it happens, it’s difficult for the registered merchant to get away with it without being caught. It’s just not worth it.
Let’s be smarter about this, and rest assured there are systems in place to ensure you’re protected at all times.
Source: ABM via SoyaCincau
