The Better Business Bureau recently released a warning about a new scam involving contactless, tap-to-pay methods.
The scam is called “ghost tapping,” which targets tap-to-pay cards and mobile wallets through Near Field Communication, better known as NFC. NFC technology allows devices to exchange data at a very close range, and typically is used for tap-to-pay devices, according to a news release from the Better Business Bureau.
Using NFC, scammers are able to obtain access to users’ information and mobile wallets through various methods, including getting close to people in public places and secretly making charges on their tap-enabled cards or mobile wallets, pretending to be a vendor and asking for tap payments, charity scams using tap-to-pay and rushing the payment process so that users do not check the business name or transaction amount as they pay.
Some scammers make small withdrawals to avoid triggering fraud detection systems, which means victims may not notice the theft right away, according to the Better Business Bureau.
The Better Business Bureau said in its news release that it had received several reports of the “ghost tapping” scam, with reports of individuals selling items and claiming that they are only able to accept tap-to-pay payments before overcharging consumers.
Some signs that you may be a victim of “ghost tapping” include receiving bank alerts about small or unusual “test” charges, a request to tap without being shown the total or a receipt, and suspicious charges after being in crowded areas such as festivals, markets or transit stations.
To prevent being scammed, the Better Business Bureau recommended using an RFID-blocking wallet or sleeve, always confirming payment details and merchant names, setting up transaction alerts, keeping an eye on financial accounts, and limiting tap-to-pay usage by swiping or inserting your card instead.
If you’ve been a victim of a tap-to-pay scam, the Better Business Bureau recommended reporting issues to your bank or card issuer, freezing or canceling the impacted card and reporting scams to the Better Business Bureau Scam Tracker.
This article originally published at What is ‘ghost tapping’? Better Business Bureau warns of new NFC phone payment scam.
