Can criminals steal money from contactless cards?

Consumers who use contactless debit and credit cards to buy goods or services could be at risk of falling victim to a worrying new scam. 

Reports suggest that criminals are buying card paypoints, and using them to withdraw money from people’s accounts by waving them close to pockets and bags on trains and other transport.

This scam was flagged in a social media post, picturing a man on a train, wandering near people with one of these portable card terminals – the same as those used in shops to authorise small transactions.

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How the scam works

The limit for a contactless transaction increased from £15 to £20 in June 2012 and again to £30 in September 2015. This has prompted criminals to consider ways to take advantage of vulnerable consumers.

How do contactless payments work?

It works by, in theory, a thief entering a price lower than £30, then tapping the device against people’s pockets where they hold their cards. The card would then be charged.

While this is rare compared to other forms of card fraud, it’s worth being aware of this scam to ensure you aren’t putting yourself at risk. 

This is particularly important given that figures show contactless payments are booming. Figures from UK Finance show that 7.4 billion contactless payments were completed in 2018.

In 2018, contactless card fraud totalled £19.5 million - this includes contactless debit and credit cards and payments made using mobile phones. However, this figure is relatively low (in 2018 contactless payments totalled £69 billion), and if cardholders are careful they should manage to escape falling victim to this type of fraud.

Beware of criminals operating in supermarket car parks.

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How you can protect yourself

• To safeguard against such a scam, make sure you keep contactless cards in your wallet. Keep this out of sight and in a bag when out.

• Avoid placing cards in your back pocket – which makes them an easy target for thieves, whether using sophisticated contactless technology or not.

• Check your bank statements regularly to spot any fraudulent transactions early.

• Contacting your bank as soon as possible should mean you get your money back.

• Some reports suggest wrapping a card in tin foil prevents it from being read, even when rubbed against a reader – this may sound a step too far, but if you’re really concerned it’ll help give you peace of mind.

• Metal cardholders and lined wallets are available from retailers and could also help prevent contactless technology fraud.

• If you are particularly concerned, you may be able to opt out of having a contactless card. Talk to your bank, as some allow this.

For more tips and useful information, browse our money articles.

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