Travel: Beware of contactless payment frauds on credit or debit cards
The new trend of contactless payment frauds in the UAE, many residents have been affected
Dubai: Experts have warned against contactless payment frauds while making payments on the go.
Contactless payments, a form of card-present purchases, resemble traditional transactions through cards but there is a slight difference. What sets them apart is the integration of Near Field Communication (NFC) technology, enabling swift and secure data transmission between the consumer's card and the merchant's terminal within close proximity.
Projections from Juniper Research suggest a remarkable uptick in global contactless card expenditure, anticipated to surpass $10 trillion by 2027. This surge underscores consumers' preference for the convenience and efficiency of contactless payments, while financial institutions and retailers acknowledge its potential to streamline transactions and elevate the overall customer experience.
Frauds associated with contact-less payments?
Dubai Police and the Emirates authority as of 2024 have arrested nearly 1000 criminals who are associated with contact-less payment frauds, where hardworking individuals are being deprived of their hard earned money due to the frauds.
Frauds associated with contactless payments?
Dubai Police as of 2024 have arrested nearly 1000 criminals who are associated with contactless payment frauds, where hardworking individuals are being deprived of their hard earned money due to the frauds.
- Stolen RFIDs
- Stolen pins
- Access to cards without pins
- Overcharging by not asking for receipt
- Email scams via fraudulent company generated emails
- Fraudulent calls
Not applying two-factor authentication on your mobile banking applications and online banking services.
Now these are the types of frauds which are often associated with contact-less payments, and can often be utilised by thieves for their own benefit, helping them steal your hard earned money, which were meant to be yours but is being used by someone else.
How to avoid contact-less payment frauds?
Travelsdubai.com spoke to Farhan Malik, a banking expert, who revealed the discrepancies around contactless payments.
"Once your money has gone out of your bank, it can never be returned. Yes, only miracles help it recover, and sure thorough investigations can help them return too but those are rare cases," he said.
Malik also gives tips on how to avoid such frauds.. He said that having zero digital presence of your passwords can be one way but there are other ways to avoid these scams too.
- Never share your One-Time-Password with any entity or individual until or unless, they are not verified.
- Avoid or leave the website where you are doing your online shopping, if you witness any change in language from usual.
- Avoid storing your cards in easily accessible pockets or bags that may attract the attention of pickpockets.
- Consider lining your wallet or cardholder with tin foil to thwart scanning devices attempting to read your card information. Alternatively, RFID-blocking products such as readers are available commercially.
- Exercise caution when making payments and ensure your card remains within your sight at all times. Even momentary lapses in visibility could provide an opportunity for skimming devices to capture data from your card's magnetic strip.
- Refrain from entrusting your card to others for payments. Always ensure your presence during transactions to mitigate the risk of unauthorized use.
- Request a receipt following each transaction to verify the accuracy of charges incurred.
- Monitor your bank statements and credit report vigilantly to detect any suspicious or unauthorized activity promptly.
- Report any instances of lost or stolen cards immediately.
- While contactless cards offer a convenience, there exists a limit on the number of transactions before a PIN is required.
- However, it is advisable not to delay reporting to prevent potential misuse.
It is better to be safe than sorry, because these frauds can deprive you of your hard-earned money in a second.