HOUSTON, TX — A Montrose restaurant owner says tap to pay has become a costly problem after a wave of chargebacks tied to cards that were apparently loaded onto other people’s phones. Since opening in May, Leighton’s — House of Lamb and Ramen has seen 30 to 45 chargebacks.
Owner Leighton Dickson says those disputes have left him more than $5,000 out of pocket. He says the losses are not only a business issue but also a sign that payment fraud is slipping through when thieves use stolen card details instead of the physical card itself.
How The Fraud Works
According to Mitchem Boles, a cybersecurity expert with Intezer, the scheme often begins with a phishing email or text message that looks real enough to trick someone into handing over card or login details. Once a thief has that information, the card does not need to be present.
Boles says the stolen details can be loaded onto a phone and used right away, sometimes with biometrics the thief already has access to. In Dickson’s account, that can lead to purchases that look suspicious on paper, such as an out-of-state cardholder apparently ordering a large meal in Houston late at night.
What The Restaurant Changed
Dickson says he is now tightening payment rules at the restaurant. For dine-in or takeout orders, Leighton’s is asking customers to pay with a physical card or, if they are tapping by phone, to show an ID that matches the card…