A new contactless payment scam known as “ghost-tapping” has emerged in New York, exploiting Near Field Communication (NFC) technology to conduct unauthorized transactions without physical access to payment cards or mobile devices. The scam follows a broader pattern of NFC relay attacks targeting digital wallet users globally.
The scam takes advantage of the tap-to-pay functionality built into modern credit cards and digital wallets. Perpetrators use wireless devices to initiate unauthorized transactions by getting close enough to victims’ cards or phones in crowded public spaces, without making physical contact. The technique represents an evolution from traditional card skimming methods, as it exploits the same NFC technology that has made contactless payments increasingly popular during and after the COVID-19 pandemic.
Unlike traditional card fraud schemes that require stealing or physically handling payment cards, ghost-tapping enables criminals to conduct transactions remotely. Victims typically discover the unauthorized charges only after reviewing their financial statements. Recent research has shown that mobile fraud costs North American merchants $4.61 for every dollar of fraud committed, making it an increasingly costly security challenge.
“Tapping your card or phone to pay has become second nature for many of us. It’s quick, easy, and you don’t even have to hand your card to anyone. But scammers are finding ways to take advantage of this payment convenience,” the Better Business Bureau (BBB) stated.
The organization further noted that “Unlike previous debit and credit card scams, which required physical contact with the card, ghost tapping eliminates this need. There are occasions where the scammers will attempt to trick unsuspecting individuals in public places.”
The scam is particularly effective in densely populated areas where criminals can approach potential victims without arousing suspicion. Security experts recommend using RFID-blocking wallets or sleeves to prevent unauthorized NFC scanning, maintaining awareness in crowded spaces, and regularly monitoring financial statements for suspicious activity. Some financial institutions are responding to these threats by implementing additional security measures, including biometric authentication for payment verification.
Financial institutions advise customers to report any unauthorized transactions immediately to their bank or card issuer to ensure prompt investigation and potential reimbursement. As the adoption of contactless payment methods continues to grow, industry experts anticipate that enhanced security measures, such as standardized cybersecurity certifications for digital wallets, will become increasingly important in preventing such attacks.
Sources: Hudson Valley Post
