What is ‘Ghost Tapping’ and How Can You Protect Yourself From It?
As contactless payments become a fundamental part of life in Canada, a concerning scam known as “ghost tapping” is exploiting their convenience.
Ghost tapping is a fraudulent technique that exploits the “tap-to-pay” feature found on cards and mobile wallets. It uses near-field communication (NFC) technology, enabling a card or phone to exchange data with a payment terminal at very close range.
According to a Payments Canada report, in 2023, contactless payments accounted for 63% of all in-store transactions—a 17% year-over-year increase. Another study indicated that by 2023, contactless payments accounted for approximately 50% of card transactions in Canada. This widespread use of tap-to-pay means that any scam exploiting NFC technology, such as ghost tapping, has a vast pool of potential victims.
Because many tap transactions do not require a PIN, and fraudsters often test stolen accounts with small charges before escalating, victims may not notice the scam until they face significant losses.
How to Protect Yourself:
1. Stay Alert for Red Flags: Be cautious of vendors who insist you “just tap” without displaying the total amount or offering a receipt. Also, watch for small or unusual “test” charges on your account after visiting crowded places.
2. Use an RFID-Blocking Wallet: Consider replacing your old wallet with one that blocks RFID signals. RFID-blocking wallets, made from materials like carbon fibre or aluminum, create a protective shield that prevents unauthorized access to your payment information through NFC technology.
3. Verify Merchant Details Before Tapping: Never let your guard down when a merchant hands you their payment device. Always check the merchant’s name and the total amount displayed before tapping, especially at flea markets or festivals where counterfeit readers are more likely to occur, and crowds are larger.
4. Enable Real-Time Transaction Alerts: Banks such as RBC, CIBC, and TD allow you to set up instant push notifications for all card activity, helping you stay informed about your transactions.
5. Regularly Review Your Statements: Check your transaction history frequently for small, unfamiliar charges that could indicate the testing of stolen card credentials.
6. Act Quickly if You’re a Victim: If you think you’ve fallen victim to ghost tapping, contact your bank or card issuer immediately to freeze or cancel your card. Be sure to report the incident to your financial institution or the Canadian Anti-Fraud Centre (CAFC).
As the popularity of tap-to-pay continues to rise, Canadians need to remain vigilant and verify every transaction in their accounts. Don’t let the convenience of contactless payments cost you!
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