This is understandable, as contactless has gained huge momentum during the Covid 19 pandemic, allowing consumers to pay for their purchases without having to touch the payment terminal. Contactless payment has since revolutionized the way we transact on a daily basis. Thanks to NFC (Near Field Communication) technology, it is now possible to pay for your purchases simply by holding your card or smartphone close to a payment terminal. Unfortunately, this technology is not without risks, since fraudsters manage to use it to extract money from their victims. Discover here their modus operandi and the different ways to protect yourself.
How does contactless payment work?
Contactless payment is based on NFC (Near Field Communication) technology. This allows communication to be established between two devices at a short distance (only a few centimeters). This communication takes place via radio waves allowing data to be exchanged when the payment terminal and the user’s card or smartphone are sufficiently close. When paying, the bank card or smartphone sends encrypted information to the terminal, which in turn verifies this information with the card issuer. The problem is that any payment terminal can capture a payment if it gets close enough to the victim’s card.
How does the contactless payment scam work?
The most common contactless payment fraud is where fraudsters mingle in a crowd, for example in a store or on public transport, and use an NFC reader to intercept the data of a bank card when it is near. The first reports of this type of fraud arrived in 2021. According to Midi Libre, crooks equipped with payment terminals managed to extract payments in the Montpellier metro. This type of scam remains rare: it represents less than 1% of bank card scams. The threat remains present, but payment by telephone has mitigated it. Indeed, the ever-increasing use of smartphones for payments has made it almost impossible for scammers to trigger a contactless payment, since they would first have to unlock the device and launch the victim’s payment application .
Does increasing the payment limit represent a risk?
Until June this year, due to the amount limits in force for contactless payments, victims of contactless payment fraud fortunately could not lose more than 50 euros. With the gradual deployment of “contactless Plus” payment, some merchants have already started to authorize contactless payments without caps. Rest assured: these payments will always require a PIN, which always limits fraud to small amounts.
How to protect yourself from contactless payment fraud?
Certainly, the risk of falling victim to a bank card scam is low, but it is always safer to adopt good practices to protect yourself from fraud. Several solutions and tips are available to you to avoid any scam:
RFID protection: the best way to avoid an unwanted payment
To avoid any interception between your card and a fraudulent payment terminal, one of the best solutions is to use an anti RFID/NFC protective case. This type of card case fully protects it by providing a shield against any type of attack by approximation. Generally, these cases are effective against both NFC and RFID waves. They are made with materials that create an electromagnetic barrier, making communication between a reader and a card impossible while it is inside the case or protector
Use secure payment apps
With digital payment wallets, the risk of contactless payment fraud is extremely low. To activate the payment, the fraudster would have to be able to unlock the phone and launch the payment application, which is practically impossible. Additionally, most e-wallets incorporate strong authentication methods to validate payments. This means that even if a fraudster were to gain access to your device, it would be difficult for them to complete a transaction without knowing your PIN or fingerprint.
Check your statements regularly
Be alert for any suspicious transactions in your bank account. Check your statements and report any unusual activity to your bank. Please note that if you do not wish to use contactless payment, you can inform your bank who can deactivate it for you. It is also possible to deactivate it in most mobile banking applications.
If you fall victim to a scam, cancel your bank card as quickly as possible by contacting your bank. You may be eligible for a refund, and a new card will be sent to you. Contactless bank card scams are rare, and the most common are those that send fake emails and SMS messages to steal your data. To avoid falling into the trap, remember that banks never ask for sensitive contact details by email or SMS.
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