Intelligent Fin.tech Issue 19 | Page 53

SECURITY SOLUTIONS

EXPERT REVEALS FOUR CONTACTLESS PAYMENT SCAMS WHICH COULD COST YOU YOUR BANK ACCOUNT

With the expansion of mobile payment systems , tap-and-go cards and wearable devices , consumers are increasingly opting for the ease of contactless transactions . However , this rise in usage also brings forth a corresponding increase in security risks , exposing you to various fraudulent schemes orchestrated by cybercriminals .

Trevor Cooke , privacy expert at Earthweb , discusses three of the most common contactless payment scams and reveals how you can protect yourself .
The four most common contactless scams
Skimming devices
Fraudsters install skimming devices on legitimate payment terminals to capture card information when users make transactions . Cooke said : “ These devices can covertly steal card details , including the card number and expiration date , enabling criminals to clone cards or make unauthorised purchases .”
Shoulder surfing
This tactic involves criminals lurking near individuals making contactless payments and secretly observing or recording their card details . With this information , fraudsters can easily access the victim ’ s accounts or make fraudulent transactions .
Card cloning
Criminals utilise sophisticated techniques to clone contactless cards , replicating the data stored on the card ’ s chip . Once cloned , these cards can be used for unauthorised transactions , posing a significant threat to users ’ financial security .
RFID readers
Cooke explains : “ RFID ( Radio Frequency Identification ) is a technology that uses electromagnetic fields to automatically identify and track tags attached to objects . These tags contain electronically stored information that can be read remotely using RFID readers or scanners .” In the realm of contactless payment scams , criminals may exploit RFID technology by using illegal RFID readers or scanners to intercept data from unsuspecting individuals ’ contactless cards or devices without their knowledge .
Identifying red flags and protecting your personal information
Cooke ’ s helpful tips to identify contactless payment fraud and to best protect your personal information include :
• Regularly monitor bank statements and transaction history for any unauthorised or suspicious activity
• Shield PIN entry when making transactions , ensuring privacy and preventing potential shoulder surfers
• Verify the security of payment terminals and ATMs before use , checking for any signs of tampering or suspicious attachments
• Enable transaction notifications and alerts on mobile banking apps to receive immediate notifications of any unusual activity
• Consider using additional security features such as biometric authentication or tokenisation for added protection
• Employ protective measures such as RFID-blocking wallets or sleeves , which help shield their cards from unauthorised scanning attempts
As cybersecurity concerns continue to evolve alongside advancements in technology , consumers must remain aware and prioritise proactive measures to safeguard their financial information . As noted by Cooke : “ In an era where data breaches and identity theft have become normal , it ’ s essential for people to prioritise the security of their personal information , especially when engaging in contactless payment transactions .” � www . intelligentfin . tech
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