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Contactless credit cards utilize radio frequency identification (RFID) to transmit data. Hackers have taken advantage of it by making fake scanners or using card skimmers designed to steal data transmitted through RFID.
FREMONT, CA: Contactless payment is the 90s innovation, and now it is on a roll across the world. Both consumers and companies are finding ways to conduct businesses with the least possible physical interaction during in-person transactions.
People living the fast-paced lifestyle do not want to waste their valuable times by waiting in billing queue or counting cash to make a purchase. They want to travel light and secured with no fear of losing their money. Retailers are looking to reduce cart abandonment by providing a seamless payment experience. However, while considering the benefits of contactless payments, one should also have a look at the risks associated with it.
Risks that Come with Convenience
When it comes to convenience, contactless payment has kept its promise. But, like any other technology, it raises concerns regarding data privacy and mobile security. Since one does not need a PIN, a stolen phone or a lost credit card can give criminal’s easy access to the one’s account. A phone without proper security features in places increases the chances of fraudulent transactions.
Contactless credit cards utilize radio frequency identification (RFID) to transmit data. Hackers have taken advantage of it by making fake scanners or using card skimmers designed to steal data transmitted through RFID. Once hackers get the needed information from the card or wallet, they can create cloned cards. On the other hand, mobile wallets depend on near-field communication (NFC) that transmits data within a very close range. It still is one of the safest ways to conduct financial transactions.
Since contactless payments can reduce fraud through more secure methods of transmission and mobile device locks. However, another potential threat could be data privacy. Contactless systems collect copious amounts of data from users and can utilize that information to track them. And not to forget, any time uses download an app to their smartphone, there is a high risk of malware or man-in-the-middle (MitM) attacks that can access information stored on the device, including personal information, bank account numbers, confidential work files and more.