Contactless pick-pocketing to follow contactless payment

by Gill Montia

Story link: Contactless pick-pocketing to follow contactless payment

Contactless payment cards are seen as a boon for people in a hurry wanting to pay for low-value items, such as their morning coffee or a newspaper.

However fraudsters are not far behind the latest technology and fears are already being expressed about the emergence of “contactless pick-pocketing”.

Contactless credit and debit cards work in a similar way to the Oyster card, which is used by millions of London bus and tube travellers.

Cardholders do not need to use a signature or pin, or even insert the card into a slot.

The card emits a signal, which is picked up by an aerial in the contactless reader when the card is swiped across the device on the retailer’s counter.

According to Georges Liberman, who works for the French card technology manufacturer Xiring, “both promoters and users must be aware of weaknesses which can be exploited by criminals.”

Machines supplied by legitimate card reader manufacturers are limited to a four inch range, making it difficult for a criminal to pick up the signal and card details.

However, it is relatively straightforward to pick up signals at a greater range; this is done by increasing the radio frequency power of a card reader.

The adaptation enables a fraudster to collect card details from over two feet away.

The card data alone is of no use to criminals because they would need a dishonest retailer to process fraudulent payments but from past experience, Mr Liberman expects committed fraudsters to overcome this by setting themselves up as a “retailer”.

Apacs, the body representing payment services providers, points out that only the contactless payment details that can be captured in this way, and not information on a built-in credit or debit card.

Xiring is currently working on the development of a card wallet, which will prevent skimming by even the most powerful illegal card readers.