BBB warns consumers of tap-to-pay scams this holiday season

Tap-to-pay scam: BBB warns consumers of ghost tapping

The Better Business Bureau is issuing an alert that tap-to-pay scams are rising. Here's how ghost tapping works and what you need to look out for.

HOUSTON - A warning before you shop in a crowded mall or attend a busy festival or sporting event this holiday season. The Better Business Bureau is issuing an alert that tap-to-pay scams are rising.

‘Ghost tapping’ scams increasing

What we know:

The crime is also known as ghost tapping because scammers are posting charges on credit cards without the victims ever seeing it happen.

Tap-to-pay uses the chip in your credit card, or a digital wallet on your smartphone, to allow you to make transactions by simply tapping your card or phone to a card reader. It works through what's called Near Field Communication, or NFC.  

The BBB says they're seeing a rising number of complaints where scammers are using Radio Frequency Identification, or RFID, technology in portable card readers that can exchange information with a credit card chip.

What they're saying:

"A scammer will go to some place that’s crowded, like an event, and the scammer will bump into them, and they have a Near Field Communication device that’s able to read the card and make purchases later," explained Leah Napoliello with the Better Business Bureau.

"Another way we’ve seen this work is a scammer will pretend to be a vendor at a market or an event place, and they’ll approach you. You'll purchase something using tap-to-pay, and they don't give you a receipt, and you'll see these charges on your account you were not aware of," said Napoliello.

The BBB says the scammer will usually rush you so that you won't look at the business or charge on the card reader's screen.

The BBB says other victims have reported tap-to-pay scams by someone posing as a fundraiser for a charity. They say they received a report of someone selling chocolate door-to-door to support special needs students, but then charged large amounts to the victims' tap-to-pay cards. The complainant says their mother was charged $537, while another victim reported $1,100, rather than the smaller amounts they had agreed to donate.

Protect yourself against ghost tapping

What you can do:

There are steps you can take to protect your credit card accounts.

• Use an RFID-blocking wallet or sleeve that prevents the chip signal from being intercepted
• Always check payment details on the card reader before you tap
• You can turn off the tap-to-pay feature on most credit cards using the bank website or app
• Set up additional security measures to digital wallets, such as PIN's and face scans, that must be used to place a transaction.
• Check your account daily for fraudulent transactions
• Report suspicious activity right away to your bank or credit card provider.

Victims may be able to recoup their losses if they have fraud protection on the credit card. Many card issuers offer zero-liability if you report fraud immediately. Maximum liability is capped at $50 if you report it within 60 days.