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Contactless cards pose new security threat
(22-11-07) - A new breed of credit card that allows users to pay for small items without signature or pin, are leaving consumers open to fraud according to industry experts.
Those attending Cartes 2007 - the world’s biggest plastic card trade fair - were told that cards such as the recently launched Barclaycard OnePulse, which combines a credit card, Oyster travel card and cashless payment, are at risk of a high-tech form of pickpocketing.
Because of the clear consumer benefits they offer, the cards are set to be the next big thing in banking - with Halifax beginning to roll out its Visa PayWave card this week.
However, Cartes 2007 warned that all fraudsters need to steal your cashless payment details is their own card reader within range - they don’t have to touch you or risk being caught on CCTV said The Guardian.
However, banks have reassured customers that this is not enough for criminals to actually take money from your account - they would need a dishonest retailer to process the payments.
Banking payment body Apacs told the Guardian: “There is a £10 limit on contactless card use. And the technology requires that either by time period, amount of times used, or value of items purchased, holders have to re-enter their pin to verify transactions.”
Chris Eagle, CreditChoices.co.uk commercial manager, said: “Despite these risks, ‘contactless’ credit cards will become very popular as they allow customers to avoid the queues when buying a coffee or newspaper. If you regularly use you card in this way, make sure that you keep a record of all your purchases and compare them to your monthly statement,” he advised.
“And if you do find that you have problems but don’t want to stop using it this way, contact your bank or buy one of the card protectors that will soon be on the market.”
