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Folks, there is a new POS Scam alert in town you should totally beware of as you move around carrying out financial transactions.
This Scam has been around for a while now, and it is currently making the rounds again, affecting unsuspecting Nigerians, and making them lose substantial amounts of money.
In this post, you would be learning about the MO (modus operandi) of this scam,
and you would be doing yourself a huge favor by reading till the end.
According to the Nigerian Business Analyst that explained the scam, it works thus:
“You finish your purchase and present your ATM card for payment. Once it shows APPROVED, they’ll remove your card without letting it print out a receipt, hence, the POS will revert to DECLINED. If you complain, they’ll tell you to contact your bank, that they’ll reverse the payment. Because that’s the general expectation, anyone nearby (even other customers) will join them in saying the same thing.”
“Once you fall for that scam and pay again, your money is gone. The bank/merchant will reverse the money, but not to your account. It goes to the vendor’s account. You’ll just waste your time going back and forth between your bank and the vendor. This has happened to me 3 times. The first 2 times, I didn’t bother because the money wasn’t material.”
This third one is the straw that’ll break the camel’s back. According to my bank, the merchant refused to refund me because they claim to have already reversed the money. Since the reversal can’t be traced to my account, my bank is following up to find a solution. So, to recap, if your transaction shows DECLINED and debits you, your money will be reversed to your account. If it 1st shows ‘Approved’ then ‘Declined’, the money will be reversed to the vendor’s account.”
From the above description from someone who has been a victim of the scam three times, you can see clearly that the logic behind the scam is pretty simple.
Ordinarily, if for any reason your card gets declined at a POS,
everyone expects you to sort some things out with your bank,
and at least, pay a second time, since the first time didn’t work.
But in this case, you have to be vigilant,
because the first transaction was successful before it turned to unsuccessful.
Now, if you go to the bank to rectify that kind of issue,
the money (which you paid the first time, but didn’t reflect) would be transferred to the POS vendor.
Once the money gets to him, there’s very little else you do (legally) since you can’t trace evidence of double payment to the POS vendor,
and the bank has regarded that issue rectified.
The only way you can be sure to get your money back is when the transaction was initially declined, and you have been debited.
Once the transaction shows Approved and then Declined again,
you’re about to be scammed; try your best at this point not to let it go.
Conclusion on New POS SCAM ALERT IN TOWN
POS services are almost everywhere these days;
from malls to restaurants and everything in between, your chances of coming in contact with a POS is increasing by the day.
This Scam that has been around, is a simple one, yet can confuse anybody once they are not vigilant enough.
Which is why vigilance is the keyword,
as money is involved here.
Paying a huge amount of money (or any amount of money for that matter) twice to a vendor could really be devastating,
and to be able to avoid such a scam, shine your eye!