Avoiding Instant Electronic Funds Transfer payments Risks
In 2020, e-commerce in South Africa spiked by 66%, driven by COVID-19-induced lockdowns and a drop in brick-and-mortar retail sales[i]. This increase was accompanied by an upsurge in the use of instant Electronic Funds Transfer (EFT) payments. Towards the end of last year however, the SA Reserve Bank, Payment Association of South Africa (PASA), and Financial Sector Conduct Authority (FSCA) issued a joint statement warning consumers to be aware of the risks associated with this payment method, particularly the use of screen scraping, "which makes it possible for third parties to access bank account data and automate actions on behalf of a consumer using that consumer’s online banking access credentials". The statement went on to detail some of these risks such as the potential for fraud and...