The Better Business Bureau is warning the public about “ghost tapping” and other tap-to-pay fraud schemes they say criminals are using to steal money directly from bank accounts.
What is ghost tapping, and how can you defend yourself?
Here’s what the BBB had to say.
How does “ghost tapping” work?
Ghost tapping eliminates the need for physical contact with a debit or credit card, which is unlike previous scams, said Dennis Horton, Senior Director of the BBB Regional Office in Rockford, Illinois.
“Scammers equipped with handheld wireless payment devices, the same kind used by legitimate businesses, need only to be within a few feet of the target,” he wrote in a news release. This is because tap-to-pay terminals use near field communication rad waves to obtain card information for payment.
How can you spot the scam?
Here are some ways that scammers can attempt to trick people in public places to use the ghost tapping scam or other tap-to-pay fraud schemes.
- A stranger may get “unusually close or even bump into you.” Then, with a concealed-card-reader, the scammer is able to charge their contactless-enabled card or digital wallet without authorization.
- Scammers may post as legitimate vendors. Then, they can ask people to “tap to pay” for fake products, services or donations.
- Scammers may exploit inattentive consumers “who tap their phones or cards without verifying the business name, payment amount or legitimacy of the transaction.”
Avoiding financial scams: Georgia man duped by celebrity romance scam involving fake Miley Cyrus
Can your bank help if you fall for a scam?
The theft can often go on for days before a bank’s fraud detection system identifies it, as the criminals may make small withdrawals to avoid suspicion.
More warning signs and red flags
Here are a few more red flags, according to the BBB.
- Unexpected alerts from your bank or card issue about small “test” charges.
- A request to “just tap” without showing a total or receipt.
- Suspicious activity on your account after being in a crowded space, festival or transit-area.
What else can I do to prevent this from happening?
By keeping cards in RFID-blocking sleeves or wallets, you can prevent wireless skimming. Further, these scams are especially dangerous when a victim’s debit card is involved, the BBB said…