As of February 2023, the NIBSS says POS transactions have already hit #39.58 trillion. This is a 40% growth from the previous year. A quick reminder, POS business in Nigeria is a mini-banking business where you deal with cash and other online banking transactions most of the time. Now, Nigeria’s banking industry is still prone to cybercrime acts that defraud customers of their hard-earned money.
Of course, financial institutions set measures to prevent fraudulent transactions on a customer’s account, but as a POS merchant, you still need to keep your eyes sharp like an eagle. Simply because you do not know what predator is looking at the prey from above or below.
The POS money business is a very profitable business that requires minimal running costs and capital. I mean, you can start this business with just your smartphone, a mini or the common POS device. And you have a chance of making 3% profit per thousand naira invested.
Let’s see the ways you can protect your business from bad fates. Before we proceed, remember to keep these rules to the maximum extent possible.
How To Protect Your POS Business From Fraud
1. Change your password (periodically).
If you are new to the POS business and just got a device for transactions, it is important to change your password from the default system password. This gives you extra control over your device
It is easy for external persons to access your device if left with a default password. To make things even more secure, you should also periodically change your password. All these measures are to keep you above the waters of cyber fraud.
2. Keep your POS device secure
Your PoS device should not be left to be handled by just anyone. Ensure that you only give access to trusted persons when necessary. This helps you reduce the risk of being defrauded.
Also, when making transactions on your PoS that require you to input secret details like PIN or account details, make sure you don’t do that in an exposed manner. Be discreet about your dealings.
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3. Don’t use public Wi-Fi connection
When dealing with a device synonymous with a mobile phone like a PoS device, accessing the internet using public connections can open you to the risk of being hacked.
In simple terms, it is easy for an external person to access your mobile device through your Wi-Fi connection. Once they have you connected to their Hotspot band, it’s full access to your device. It is best that you have your own internet connection for your PoS.
4. Confirm every transaction before finalizing
If it needs you to use a toothpick to count the zeros, please do. Check the transaction multiple times to confirm before clicking “Send” or “Accept”. This way you can avoid unintentional errors.
People have lost huge amounts of money just because of one more zero at the end. In cases where the customer is not using a debit card, ensure you have received the transfer to the POS bank account.
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5. When something looks confusing, stop the transaction
In case you encounter an uncommon issue while transacting with a customer, the best thing is to stop till you get a hold of what is happening. It is better to be slow than be defrauded.
If a customer’s card is misbehaving or fluctuating, it’s better to refer to number 4 or terminate the transaction. It will save you from stories that touch.
6. Never be in haste to make a transaction
Take your time when making a transaction. Dot the Is and cross the Ts. This is to avoid mistakes that are expensive. Ensure you enter every transaction detail correctly. You don’t want to end up sending money to the wrong account because of a mix-up of one figure in the account number. Some cyber fraudsters when they see how impatient or in a rush you are, can use that chance to facilitate wrong transactions
