Although Point of Sale (PoS) machines have brought significant convenience to financial transactions in Nigeria, numerous individuals in the country have fallen prey to fraudulent activities.
The unscrupulous actions of scammers are dissuading many Nigerians from embracing this technology for their business transactions.
This development follows TimesNow.com.ng’s earlier report that Nigerian banks lost a massive N9.5 billion to electronic fraud from January to August 2023.
Many Nigerians favoured it primarily because it allows consumers to withdraw money with minimal commissions, especially when the closest Automated Teller Machines (ATMs) or banks are inconveniently distant.
PoS transactions spared bank customers from enduring extended queues and the intermittent network issues frequently encountered at ATM locations.
This convenience motivated numerous Nigerians to adopt PoS as an alternative method for depositing or receiving money in any bank account nationwide.
Moses Akinwale, a trader in Mile 2, told TimesNow.com.ng:
They also facilitate various banking transactions, such as paying utility bills for electricity and water and purchasing airtime and data, among other services.
Despite the policy’s positive impact on the populace and the economy, there is a growing sense of unease among Nigerians when it comes to conducting business transactions through PoS machines.
Unscrupulous PoS operators have now resorted to using these machines to defraud unsuspecting customers, resulting in many more falling victim to such fraudulent activities.
A new facet of the fraud associated with PoS machines involves incorporating mobility into illicit business practices.
Instead of operating from stationary kiosks, some fraudulent PoS operators have adopted an itinerant approach, moving from one location to another in open markets, motor parks, and other areas with large crowds, actively advertising their services.
Sumbo Ajimobi, a civil servant who was once a victim, told TimesNow.com.ng how she was defrauded by a mobile PoS operator.
Point of Sale (PoS) operators are not immune to fraudulent activities and fall victim to deceptive customers.
Similar to how customers are scammed, PoS operators are also encountering scams from their customers.
One PoS operator shared an incident where they received a transfer from a customer, only to realize later that it was a fraudulent transaction after having already disbursed funds to the customer.
The negative accounts of such experiences with PoS customers have led to a sense of caution among some Nigerians, making them hesitant to patronize PoS agents.
Beyond physical scams, there is also a risk posed by hackers who exploit weak and unsecured networks.
These cybercriminals find it relatively easy to infiltrate systems and steal valuable customer information, including credit card numbers, National Identification Numbers (NIN), Bank Verification Numbers, and other sensitive business details.
