Tap-to-pay scams on the rise

Tapping a card or phone to pay has become second nature for many. It’s quick, easy and does not require handing a card to anyone. But scammers are finding ways to take advantage of that payment convenience. One growing threat is contactless payment fraud, where criminals use wireless devices to steal money without touching a card.

How the scam works

Contactless payment fraud is a scam that targets tap-to-pay cards and mobile wallets. Tap-to-pay works through near field communication, which allows devices to exchange data at a very close range. While NFC is generally safe, scammers can exploit it in crowded or distracted situations.

Unlike previous debit and credit card scams, which required physical contact with the card, contactless payment fraud eliminates that need. There are occasions where scammers will attempt to trick unsuspecting individuals in public places. For example, they might try getting close in public spaces, pretending to be a vendor or rushing the process. In some cases fraudsters make small withdrawals to avoid triggering fraud detection systems, which means victims may not notice the theft right away.

One person reported this experience to BBB Scam Tracker: “An individual is going door to door in (location redacted), claiming to be selling chocolate on behalf of (redacted) to support special needs students. He says that he can only accept tap-to-pay to get people to pay with a card. He then charges large amounts to the card without the cardholder being able to see the amount. He got my mother for $537... another victim for $1,100. He changes neighborhoods frequently to avoid getting caught.”

How to protect yourself from a tap-to-pay scam

—Use RFID protection. An RFID-blocking wallet or sleeve can help stop wireless skimming.

—Always confirm payment details. Before tapping a card or phone, check the merchant’s name and amount on the terminal screen.

—Set up transaction alerts. Many banks allow real-time notifications for every charge.

—Keep an eye on accounts. Daily checks help spot fraud faster.

—Limit tap-to-pay use in high-risk areas. When in doubt, consider swiping or inserting the card instead.