How to Spot and Avoid Tap-to-Pay Scams

A recent warning from the Better Business Bureau highlights a new scam targeting tap-to-pay chips in credit cards and mobile wallets known as ghost tapping. This fraud takes advantage of Near Field Communication (NFC) technology, which allows devices to exchange data at very close range. Victims may not even realize they are being scammed.

In crowded spaces such as festivals or train stations, criminals might get close to victims and use wireless payment readers without the victim noticing. Alternatively, criminals can pose as vendors or charity fundraisers, convincing victims to make a small tap payment. This minor charge may go undetected initially, allowing the criminal to use the stolen data for unauthorized charges.

An Insidious Threat

The scam’s insidious nature lies in its ability to transfer stolen card information loaded into mobile wallets to other devices. Criminals can expand their operations by using these credentials on multiple phones. While these scams may appear small-time, they are supported by a substantial infrastructure.

Insikt Group, part of Recorded Future, has identified organized networks that distribute both the phones and phishing software used in ghost-tapping fraud. They have also found advertisements and recruitment messages on messaging platforms, indicating a growing market for goods obtained through this method.

Protect Yourself Against the Scam

To protect against ghost tapping, consumers should use RFID-blocking wallets or sleeves to prevent wireless skimming. Before making tap payments, verify the merchant’s name, amount, and terminal screen for accuracy. The Better Business Bureau advises limiting tap-to-pay usage in high-risk areas like farmers markets or crowded retail stores, opting instead for swiping or inserting cards when possible.

Lastly, set up transaction alerts with your bank and regularly monitor accounts to detect any unauthorized charges promptly. If you suspect fraud, contact your bank or card issuer immediately to report the issue and cancel the card.