How many times have you stood in front of a cashier avoiding eye contact and conversation while waiting for that debit-credit machine to finally connect so you can leave the store? Yup, us too. Now, however, the ancient days of inserting or swiping and punching in pins are over!
In an age of convenience, many people are over the moon about contactless credit and debit cards. But, others are weary of this futuristic method of payment because of the high risk of fraud.
Contactless Cards Are Open to Fraud
Just check out the video below:
Mike Lee, the video’s creator, walks up to an unsuspecting actor looking at magazines.
“The victim, he doesn’t know what I’m going to do,” says Lee, getting closer to the man. “I just tapped his arse – he’s got a contactless card in his pocket – and the transaction’s approved. So, be careful.”
This short video just goes to show how quickly you can become a victim of fraud and lose tens, hundreds, if not thousands of dollars. If this new-age scam is still somewhat mysterious to you, then read on…
How Contactless Card Fraud Works
First, fraudsters will purchase a card reader machine which are frighteningly available online for as little as $30. Once it is set up, all it takes is a full day walking up and down a busy street trying to get their device close enough to people’s pockets or purses for a connection – and boom, a contactless payment of whatever amount the fraud artist plugged into the machine gets approved.
In 2016, Money Mail investigated this problem and found that a fraudster needs only to be within a few inches for a contactless payment to go through.[1]
Now, you would obviously notice if a hundred, five hundred, or God forbid a thousand dollars suddenly vanished from your bank account. However, much smaller amounts are often used when carrying out these scams.
“But many people may not miss [$30] until they check their bank statement at the end of the month. By then they assume they’ve just forgotten what they bought, and not report it,” said Morgan Rothwell, director of fraud prevention firm Defender Note.[1]
“In the meantime, the fraudster could have pocketed thousands of [dollars] by trawling up and down high streets and train station platforms, targeting hundreds of unsuspecting victims.”
Protecting Yourself from Contactless Card Fraud
If your debit or credit card has that radio-frequency identification (RFID) symbol on it, which looks like the WiFi symbol, you may have a cause for concern. But don’t worry, there are things you can do to protect yourself from contactless card fraud.
- Many wallet manufacturers have started inserting protective sleeves made of a foil-like material into their products. This prevents fraudsters’ signal from reaching your card information.
- Don’t want to buy one? You can wrap your cards individually or together to block (or even confuse) the signal required by fraudsters to make a contactless card transaction.
- If your bank allows it, talk to them about setting up a pin or notification system every time a purchase is made from your card. That way if a purchase pops up that wasn’t made by you, you could notify your bank immediately about the issue.
- Take extra care when you’re in high-density places such as public transit, downtown cores, touristy areas, etc.
Our intention is never to freak you out, but only to help grow your awareness of potential risks and problems you can run into in real life. So, we hope these tips help protect you and your friends from contactless card fraud.