As the POS business grows in Nigeria, agents have become easy targets for scammers. Many agents often worry about their safety since a single fraudulent attack can disrupt or cripple their business. Fraudsters are developing new tricks to scam vulnerable POS agents; this is why it is important to stay informed and vigilant as an agent.

To help you protect your business, we have outlined some of the most common POS fraud tactics and practical ways to avoid them.

Below are common fraud tactics and how to avoid them;

• Fake Transfer

A customer pretends to send money to the agent’s account but shows a fake debit alert as proof of payment. The agent may believe the transaction is successful and hand the cash to the scammer. After the perpetrator has left, the agent realises that the money was never received.

How to Avoid It

• Always confirm the transfer by checking your Kashzoo app (KAshzoo agents) or USSD balance before handing over cash.
• SMS alerts can be manipulated, so do not rely on it alone.
• Call your account officer to request another transfer or decline the transaction if in doubt.

• Third-Party Transfer Fraud

This happens when a fraudster transfers money from a third-party account (often stolen) to the POS agent and withdraws the cash. The actual owner of the account may report the unauthorised transfer, and the transaction will be reversed. The only loser here is the agent.

How to Avoid It

• Avoid transactions where a different person sends the money while another person withdraws it.
• Insist that customers use their accounts for transfers.
• Delay cash disbursement for suspicious transactions and verify with your bank.

• Stolen or Missing POS Terminal

Scammers may steal and use your POS machine to carry out unauthorised transactions, which could lead to losses or even implicate you in fraudulent activities.

How to Avoid It

• Always keep your POS device secure and never leave it unattended.
• Set strong passwords or PINs to prevent unauthorised access.
• Report a stolen or lost POS machine to your provider immediately to deactivate it.

• Amount Reduction During Withdrawal

Here, a customer requests a withdrawal but quickly reduces the withdrawal amount while inputting their card PIN. The agent only realises this later when reconciling transactions.

How to Avoid It

• Double-check transaction details before handing over cash.
• Always print and review receipts before completing a transaction.
• Avoid distractions while handling cash transactions.

• Fake Currency Scam

A scammer may exchange fake naira notes with real ones for real money through a cash deposit. By the time the agent notices, the fraudster is long gone.

How to Avoid It

• Learn how to identify fake naira notes by checking for watermarks and texture.
• Use a counterfeit detection machine or marker when dealing with large cash transactions.
• Refuse suspicious-looking notes.

Note: In addition to the above, agents should beware of people who come to ask if they can carry out huge transactions but never do.

Our Take

Running a POS business in Nigeria comes with risks, but with the proper knowledge and precautions, you can reduce the risks of becoming a victim to fraud. Always verify transactions, stay alert, and educate yourself about new fraud tactics. Stay safe and protect your hard-earned money secure.