Agents, users bicker over POS fraud

By Abolaji Adebayo

Agents and users of the Point of Sale (POS) are bickering over failed transactions which are increasingly turning out to be scams.

Oyeronke Oyebami, a point of sale (POS) agent narrates her experience:

“A customer came to my shop and deposited N15,000 and the transaction was approved with O’pay machine but the customer came back after 3 hours to complain that his account has not been credited.

“I tried to calm him down as he was an old man and explained  that he should go to his bank to complain but baba said no, he insisted I had not done the transaction.

“I asked him for the receipt that I gave him and he gave it back to me. I gave it to someone else to read it aloud and the person did. Still, the man said it was a lie. The man sat in my shop for the whole day and I had to pay him the money again”

Oyebami admitted that though some POS operators may be cutting corners, , she insisted that many operators are also scammed by the customers, saying at times, an unsuspecting operator may receive fake alert from customers especially when they do transfer and pay the money only to discover later that it was a fake alert.

According to her, POS scams are used on unsuspecting customers using their ATM cards.

This was corroborated by a victim of the act, Olusola Akinbio, who also narrated his experience to ECHONEWS.

Akinbio explained how he was scammed of N52,000 while trying to withdraw from a POS in Isolo.

A POS agent, Hikmat Salam, while explaining how customers are scammed by the operator, said: “When you present your ATM card to the fraudulent operators to withdraw money, once it shows ‘Approved’ they’ll remove your card without allowing it to print out receipt, hence the POS will revert to ‘Declined’.

“If you complain, they will tell you to contact your bank, that they will reverse the payment. And because that’s the general expectation, anybody nearby (even other customers) will join them in saying the same thing.

“Once you fall for that scam,your money is gone.

“The bank will reverse the money, but not to your account. It goes to the account of the POS operator. You’ll just waste your time going back and forth between your bank and the POS.”

Before she ventured into the business, Salam said she had fallen victim thrice.

According to her, she did not bother the first two times but took action the third time by visiting the bank due to the amount involved in the transaction.

She explained that the bank told her that the POS operator refused to refund her as the operator claimed that he had already reversed the money.

“Since the reversal couldn’t be traced to my account, my bank had to follow up to find a solution.”

To be safe, Salam warned customers to always be careful and watchful when dealing with any POS operator.

“If your transaction shows ‘Declined’ and debits you, your money will be reversed to your account. But if it first shows ‘Approved’ and then ‘Declined’, the money will be reversed to the vendor’s account and you won’t get your money back without a fight,” she advised.

Mr. Adesanya Ipadeola whose daughter has been a victim of POS fraud said he does not patronize POS but always withdraw from ATM and advised others to also do so as the only solution to the fraudulent act which has kept increasing among the POS operators.

Damilare Asoobowa, a bank officer also urged people to visit banks and use ATM rather than patronising the POS.

He added that customers must be guided if they have to transact with the POS.

He said: “Be guided, when you’re done putting your pin, hold the POS until it shows you approved and prints the first receipt. When you put your pin and they immediately ask you to give them the POS, don’t listen to them. Protect your money.”

In July, this year, the Economic and Financial Crimes Commission, EFCC arranged four persons for alleged N900 million fraud using POS allocated by. First Bank.

A statement by the commission alleged that Naankang Dawan, was arraigned along with his companies – Taen Nigeria Ltd, Lataen Engineering Ltd – and Moruf Tunji Olukanmi, at the Federal High Court in Jos, Plateau State.