Seven ways to protect yourself from virtual card fraud

CapeTalk’s Pippa Hudson speaks with Johan Brouwer, the National Financial Ombud Scheme’s Manager for Adjudication at the Banking Credit Divisions.

Listen below:

Being able to tap your phone or watch to make a payment can be extremely convenient.

However, the National Financial Ombud Scheme has warned that fraudsters are adapting to this new way of making purchases.

The Ombud has seen a 73% year-on-year increase in digital banking fraud complaints between 2024 and 2025.

“It is quite staggering actually.”

- Johan Brouwer, National Financial Ombud Scheme’s Manager for Adjudication - Banking Credit Divisions

To prevent virtual card fraud, there are a few things that you can do:

Never share your PIN, login credentials, passwords or One Time PIN

Your bank will never ask you for any of this information, so if you get a call asking for this it is definitely a fraudster trying to take advantage.

If your bank believes there is fraud happening on your account, Brouwer says they will immediately block your account and will not ask for this information.

Enable Multi-Factor Authentication

If you are using virtual cards or a banking app, ensure that extra verification is required.

This can include a one-time PIN or biometric authentication.

Use a secure internet connection

If you can, avoid making any transactions on public Wi-Fi.

If you are not using a secure connection hackers may be able to intercept your data.

Set spending limits

If you are unfortunately a victim of fraud on your virtual card, a spending limit can ensure that the criminals do not make off with your life savings.

Use unique, strong passwords

Your banking app needs strong protection, and this means a strong password that you do not use anywhere else.

If you struggle to remember passwords, use a strong password manager to help you keep track.

Turn Off Auto-Save

Unless it is absolutely necessary, try not to save any card details into your browser or apps.

Do not click email or SMS links

When receiving a message from any unknown sources, play it safe and do not click any links or download attachments.

Credible financial institutions will never ask you to click on links.

Scroll up to the audio player for more.