The development of technology in the financial sector brings not only conveniences but also new threats. One such threat is fraud using Near Field Communication technology
NFC — is a technology for wireless data transmission over short distances. It allows information to be transferred between devices located just a few centimeters from each other. Contactless payments using cards, smartphones, and other devices are becoming increasingly popular. However, this convenience also poses a threat, especially when it comes to stealing money.
How does NFC work?
With NFC, users can make payments by simply bringing their devices close to a terminal that supports this technology. The most well-known examples are cards with the PayPass feature and smartphones using mobile payment systems. This method significantly speeds up transaction processes and reduces queues, but it also opens doors for fraudsters using similar technologies to cause harm.
Although NFC technologies have built-in protections, such as data encryption and authentication, fraudsters find ways to bypass them. Unfortunately, victims often remain unaware that something is wrong with their card until an unexpected transaction occurs. Therefore, understanding the basic principles of NFC operation and current threats can help prevent fraud.
NFC card fraud: main methods
Despite the presence of security systems, fraudsters continue to develop their methods of stealing money. Let's consider some common ways in which criminals use NFC technologies.
Contactless skimming
Skimming — is a method of stealing bank card data using special devices called skimmers. Fraudsters place these devices on terminals or touch the victim to steal card information. Skimmers can be disguised as regular payment terminals, and they typically work with cards that have NFC functionality.
Some fraudsters are capable of creating and using easily installable portable devices that allow them to read card data when they are nearby. This can happen even in public transport or crowded places, where the victim doesn't even notice the theft.
Scammers in public transport
Public transport — is a paradise for fraudsters using NFC technology. The most common fraud involves criminals themselves becoming victims of scam schemes and using their devices to "scan" passing passengers.
A passenger standing nearby may not even suspect that their card is being read. This happens quickly and discreetly, and as a result, the victim may lose money without understanding how it happened. Therefore, an important aspect of protection is being aware of your surroundings and being cautious.
PayPass fraud: how not to become a victim
The PayPass system has significantly simplified the payment process for consumers. However, the presence of this convenient feature significantly increases the risks associated with fraud.
Using fake terminals
Some fraudsters create fake terminals that look real but actually collect user card data instead of conducting transactions. These devices can be practically invisible, so it's important always to pay attention to where you are making a payment.
Sometimes scammers use deceptive techniques to distract the victim and steal information. For example, they may ask for your help so that you don't pay attention to the moment when your data is being read.
Protection from NFC fraudsters
In light of the above, it's time to learn how to reduce the risks of losing money through NFC payments. Following safe banking card practices can significantly improve the security of your finances.
Physical card protection
The initial step to security — is the physical protection of your card. There are many anti-skimming protection tools available, such as special wallets with RFID blocking, which will protect your card from unauthorized access.
Wallet models providing protection are designed to block radio signals in the ranges used by NFC. Thus, even if a fraudster tries to read your card data using a special device, it won't work.
Constant attention to accounts
Monitoring your expenses is considered one of the best practices for detecting suspicious transactions. Regularly check your account statements to quickly identify unauthorized charges. The sooner you notify the bank about this, the higher the chances of saving your money.
Using additional security measures
Modern financial technologies offer the option to enable two-factor authentication for payments. You can also set up purchase alerts to notify you of each transaction made.
If you have the opportunity, activate this option. It will help quickly notify you of suspicious actions and allow you to take protective measures promptly.
Conclusion
NFC card fraud — is a growing threat. However, with awareness of the issues and some simple precautions, you can significantly reduce the risk of becoming a victim.
It's important to remember that fraudsters may be around you, and each of us needs to be careful and vigilant to protect our finances. Always monitor your financial situation and explore available protection measures. The times when contactless payments seemed safe and reliable are changing, and today we must adapt to the new realities of financial threats.