It may sound like something that has to do with Halloween, but ghost tapping is all trick and no treat. Also, it’s something you have to watch out for year-round, not just at the end of October.
Ghost tapping exploits the technology behind contactless payments, which are generally safe but can be vulnerable in certain situations.
Ghost tapping is a technology-based credit card scam. Contactless payments use near field communication (NFC) technology, which allows transactions without physical contact. This scam is called ghost tapping because it does not require physical contact with the card, making it harder to detect. It can put charges on your account without stealing your credit card or hacking your data. It’s almost like having a ghost pick your pocket.
How ghost tapping credit card scams work
To understand how credit card scammers use ghost tapping to access your account, think about how you use your card. Tap-to-pay technology uses wireless technology to exchange data at a very close range or close range. If you’re like most people today, you enjoy the convenience of tapping to pay. Instead of swiping your card through a reader, you simply tap the reader—or just wave your credit card or mobile wallet near it.
Scammers use wireless devices and specific card reader technologies to target tap-to-pay users, taking advantage of tap-enabled cards and mobile wallets in public spaces, especially crowded areas such as festivals, transit stations, and other high-risk locations. They often trick unsuspecting individuals by secretly charging small withdrawals to avoid triggering fraud detection systems and steal money. Ghost tapping eliminates the need for physical contact, making it easier for scammers to steal money without the victim noticing.
Several reports indicate scammers count on victims not checking the transaction amount or payment details on the terminal screen or confirming the business name. Always be cautious with unfamiliar vendors and confirm payment details before completing tap payments. Monitoring for unauthorized transactions and utilizing transaction alerts can help identify fraud more quickly.
How to protect yourself from ghost tapping
It’s scary how technology designed to make consumers’ lives easier is being used to rip them off. So, how can you protect yourself from tap-to-pay fraud? Here are three possibilities:
- Use RFID protection. Tap-to-pay cards work by sending a radio-frequency identification (RFID) signal to card readers. Some products can block these signals. There are blocking cards that fit into your wallet alongside your credit cards. There are also RFID blocking sleeves that fit around cards. By enclosing your card, these can be more effective than blocking cards at making sure a signal doesn’t leak out, but they may not fit as neatly into your wallet. There are even specially-designed wallets that block RFID signals.
- Transaction notifications. Many banks offer transaction alerts and real-time notifications for every purchase, helping you spot fraud faster and avoid losing money. These alerts inform you any time something is charged to your credit card. This isn’t as intrusive as it may sound. For legitimate transactions, it should merely confirm a transaction you just made.
- Limit the cards you carry. Some people carry several credit cards at once, even if they have no intention of using them all on a given day. If you think of each card as a potential source of vulnerability to scammers, you can see why limiting the cards you carry might be a good idea.
Note that these protective measures are not mutually exclusive. There’s no reason why you can’t use all three. Additionally, monitor your financial accounts regularly for unauthorized transactions to help prevent fraud and protect your accounts.
If you notice a suspicious transaction on your credit card, promptly contact your bank or card issuer to report the affected card and stop any further unauthorized activity.
Other credit card scams
Here are some other common credit card scams, along with protective measures you can take against each:
Credit card skimmers
These imitate the devices that you slide a card through or insert a card into. They are often placed over legitimate card readers. When you run your card through the skimmer, it records the information on the card. Credit card scammers later retrieve that information. Now they can use that information to make fraudulent charges on your card or sell your information.
These skimmers are often found on gas pumps and on other devices that are not continually attended by a cashier or other employee. Look for signs that the card reader is bulkier than normal or does not fit neatly onto a machine. When in doubt, pay inside the gas station rather than at the pump. You might also avoid using non-bank ATMs – besides being potential targets of these scams, these often have excessive fees anyway.
Fast food scams
A large number of fast-food restaurant employees have been caught making a note of customer card numbers and other information for later use. They sometimes take a picture of your card to capture this information quickly.
This can happen at any restaurant, or any time someone takes your card out of your sight for a few moments. Fast food restaurants aren’t the only place where this can happen, and of course, most fast food employees are honest. However, given the number of transactions these restaurants process and the low pay their employees typically earn, they seem to be common locations for these scams.
If possible, try not to let your card out of your sight when paying for something. If you’re using the drive-through, consider using cash rather than handing a card to an employee who can disappear with it for a crucial few seconds.
Padded charges
Another scam that’s common to restaurants involves adding some extra charges when they ring up your bill.
This is why it’s a good idea to review the bill carefully before handing over your card. Also, always get a receipt, and check that the amount on the receipt matches the amount on the bill.
Payment due scams
These start with texts or emails saying that you owe money for something. They often claim to come from a state department of transportation collecting tolls assessed by E-ZPass readers. Or, they use the names of popular retailers or cable television companies and claim your payment has failed. They then give you a fraudulent link and ask you to provide credit card information.
Yet another variation on this type of scam is an email offering you a free prize. All you need to do to claim it is pay for the shipping of that prize. In reality, the only prize is your credit card information, which the scammer receives when you enter it to pay for the shipping.
To protect yourself, never provide credit card information in response to a text or email you received out of the blue. If it appears to be from a company you do business with, go to a known website of that company to check your account status, rather than clicking on the link.
Protecting yourself in the age of credit card scammers
Sadly, new scams are invented all the time. Besides watching out for the known scams listed in this article, maintain a healthy skepticism about any attempt to get your credit card information.
Also, use apps and online access to closely monitor your account information. It also helps to regularly check your credit reports for unauthorized activity.
Should you be spooked by ghost tapping and other credit card scams? As scary as they are, awareness of these scams is the first line of defense. The more sensible precautions you take, the more reassured you can feel.
