When it comes to contactless card security, I’m generally pretty relaxed about the various concerns over fraud, including scare stories of scammers with scanners sneaking payments from unsuspecting travellers.
However, the recent investigation by moneysavingexpert.com which reveals that contactless cards can still be used several months after their cancellation does raise some genuine concerns. Int he investigation, one victim of fraid
Whilst anyone finding their cards being used like this are likely to get their money back from their bank, it appears that because of the faults in the system, the only way for identifying a problem is for the victim to notice the fraudulent transactions on their statements, potentially months after they’ve cancelled their lost or stolen card.
The UK Card Association seems pretty relaxed about the problem:
“Fraud on contactless cards is rare and considerably lower than overall card fraud. Consumers are fully protected against any fraud losses and will not be left out of pocket.
“As always it is important to check bank or card statements regularly for any unusual transactions, especially if a card has been lost or stolen. When a customer reports a lost or stolen card they will be advised to report any transactions they do not recognise to their bank.”
This issue needs solving if contactless cards are to continue to thrive – over £2bn a month is now spent in this way – so what can be done?
Well, firstly, the cards should get the user to verify the PIN every few transactions (possibly every 3 or 4), which would limit the total loss. In fact, I thought this should already be happening, but I’ve used my own contactless card a few times and have yet been asked to enter a PIN during one of those transactions.
The banks should also be able to identify transactions from cancelled cards at their end, so the cardholder doesn’t need to keep an eye out for fraudulent transactions themselves.This is a no-brainer.
What do you think? Are you happy with the security of your contactless cards, or have your concerns stopped you from using them? Let us know your thoughts in the comments section, below.