Contactless card payment increase: Does this pose a great risk for card fraud?

From Wednesday 1^st April, rules surrounding contactless payments will change with the limit being increased from £30 to £45. With social distancing now in effect to control the spread of the Coronavirus, retailers want to limit the amount of cash that staff are handling.

However, with the increased limit on contactless payments does this pose a greater increase for card fraud?

In September 2019, fraud prevention rules came into play where you would have to input your pin for one in every five contactless payments. Around South Wales and the UK, we make around 700 million contactless transactions to pay for our goods. However, £108 million is said to be lost to fraud with 1 in 12 people admitting that they wouldn’t spot a rogue £20 entry on their bank statements.

However, to stop thieves going on a massive spending spree on your debit or credit card, payments can be blocked if the number of payments adds up to more than £100 within 5 payments.

But even with these security features in place, there are exceptions where thieves can use your card without being blocked.

Public transport

With buses, trains, train stations all adopting contactless payments it can be easy for thieves to spend your money using your card multiple times without having to input the cards pin number.

Google or Apple Pay

Google or Apple pay are features that are on everyone’s smartphones. Although you do not need to input a pin after making 5 payments, they often ask for some kind of ID (fingerprint or facial recognition).

Stay safe

The SGA or Strong Customer Authentication will help prevent fraudulent spends on your debit or credit card but to ensure that you know to stay safe here are some tips:

Check your bank statements regularly

With banks becoming increasingly paperless many of us receive our bank statements online. However, to keep track of your transactions, it’s recommended to download banking apps and set up alerts for spending.

If you have looked at your account and see unusual transactions contact your bank immediately and have your account frozen. Contactless fraud is treated like any other type of fraud and so any transactions that were carried out without your knowledge should be repaid as long as you can prove that you haven’t been negligent.

If you have checked your account and think that you are a victim of fraud, then you should report it as soon as you can to Action Fraud either using their online tool or by calling them directly.

Check your credit report

Running a credit report does more than showing you how well your finances are and your eligibility for finance and loans. It can help you spot any suspicious activity – for example, if someone uses your credit card or tries to open a bank account in your name it will show.

If you are interested in commercial security services then visit our website or call us on 01656 713950