Consumer’s guide to guarding against online scams

In today’s digital age, online fraud – also known as card-not-present (CNP) fraud, has emerged as a significant concern – not only in Namibia, but also globally.

This type of fraud occurs when a scammer uses stolen credit or debit card information to make purchases without physically presenting the card.

Bankers Association of Namibia spokesperson Magreth Mengo says: “Whether you shop online, over the phone, or via email, you are at risk of having your financial details compromised. Understanding the complexities of CNP fraud is crucial for protecting yourself. Awareness is the first line of defence against these scams. Here are five tips to help you effectively safeguard your financial information.”

Firstly, to safeguard yourself against CNP fraud, start by educating yourself on common fraud tactics, she says.

Namibian banks are actively running awareness campaigns to help consumers recognise these threats. By staying informed about tactics like phishing (email scams), vishing (voice scams), and smishing (SMS scams), you can better identify red flags and avoid becoming a victim. For example, be cautious of emails or messages asking for sensitive information, as these are often scams.

Secondly, Mengo says, to further protect your online presence, ensure that you use strong, unique passwords for each of your accounts. This is crucial because using the same password across multiple sites can allow fraudsters to access all your accounts if just one is compromised.

Additionally, activate two-factor authentication (2FA) to add another layer of security. 2FA requires a second form of verification, such as a code sent to your phone via SMS. This dual verification process significantly enhances your security by making it much harder for unauthorised users to access your accounts.

Thirdly, regularly scrutinise your bank and credit card statements for any suspicious transactions, Mengo says.

If you spot anything unusual, act promptly by reporting it to your bank immediately. This swift action is crucial because it helps mitigate potential losses and prevents further fraudulent activity.

Fourthly, to safeguard your online shopping experience, always verify the legitimacy of websites before making purchases. Ensure the URL starts with ‘https’ and look for a padlock icon in the address bar, as these indicate a secure connection.

This could help you avoid falling victim to phishing scams and fraudulent websites.

Finally, to further enhance your online security, consider using virtual card numbers for your transactions. Many banks and financial services offer this feature, which generates a unique, temporary card number for each purchase.

This approach significantly reduces the risk of your actual card information being compromised in the event of a data breach.

Virtual cards can be used for online shopping, in-app purchases, streaming services, and other digital transactions, providing an additional layer of security by keeping your real card details hidden from merchants.

By adopting these strategies, consumers can significantly reduce their risk of falling victim to CNP fraud and protect their financial information more effectively. Vigilance and awareness are essential in safeguarding against these scams. Taking proactive measures today can prevent financial loss and stress in the future.

“At the Bankers Association of Namibia, we believe empowering consumers with the right knowledge is crucial in the fight against fraud. We encourage individuals to stay informed and take proactive steps to secure their financial well-being.

“By doing so, consumers can ensure a safer financial future and avoid the unfortunate consequences of fraud,” Mengo says.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.