What is ghost tapping? Warning issued as new fraud targets millions using contactless payment methods

The break business organisation Bureau (BBB) has issued a nationwide warning about a new fraud that targets consumers who make transactions using contactless payment methods.

Known as “ghost tapping,” the fraud takes advantage of the ease of tap-to-pay credit cards and mobile wallets by exploiting wireless technology to take money from unwary victims, frequently without making direct contact.

In order to avoid fraud detection systems, scammers often make modest, undetectable withdrawals from victims' accounts, so they might not become aware of unlawful activities until large sums have been taken out.

Millions of American consumers depend on contactless payments for everyday transactions, and “ghost tapping” puts them at risk. Tap-to-pay techniques have grown in popularity because of their speed and hygienic advantages. However, the emergence of this fraud demonstrates that technical advancements can also expose them to new risks.

The possibility of monetary loss is extensive since the fraud might happen in commonplace settings, such busy events, marketplaces, and public transit.

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The agency claims that crooks will attempt to deceive people in public settings in the following ways:

Colliding with you while discretely charging your mobile wallet or tap-enabled card.

Posing as a vendor at festivals, flea markets, or events. Fraudsters may erect phony booths and demand tap fees.

Requesting a small donation but billing a far higher amount to your card.

Hurrying the procedure. Scammers rely on you tapping without verifying the transaction amount or company name.

In order to avoid alerting fraud detection systems, scammers could also make modest withdrawals.

On the “BBB Scam Tracker,” one user shared that in order to help special needs students, someone is going door to door in [location redacted] and pretending to be selling chocolate on behalf of [redacted]. He claims that the only way he can get customers to pay with a card is by using tap-to-pay. Subsequently, he charges substantial sums to the card without the cardholder's knowledge. “He got my mother for $537 … another victim for $1100. … He changes neighborhoods frequently to avoid getting caught,” the person stated, as per The Hill.

A Missouri victim lost $100 after being contacted by someone with a card reader, according to local news source KY3 News.

According to the BBB, if you become a victim of a tap-to-pay scam, you should notify your bank or card issuer promptly, freeze or cancel the compromised card, and report the transaction to the “Scam Tracker.”

Speaking to KY3 News, Michelle L. Corey, president and CEO of BBB St. Louis, said, “You can help prevent ghost tapping by being cautious when using your card in crowded spaces and purchasing from unfamiliar vendors, but this scam can still happen to anyone. The best way to avoid losing money is to review your financial accounts regularly and contact your bank as soon as you notice any suspicious activity.”

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