contactless cards accumulate 65% of fraud

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contactless cards accumulate 65% of fraud





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Coordinated Institute of Governance and Applied Economics has alerted this Tuesday that lAs contactless cards accumulate 65% of total fraud that are made by paying with credit or debit cards. In a press release, the Institute notes that, according to data from the consulting firm Juniper Research, in five years 53% of point-of-sale purchases will be made worldwide using this type of contactless card.

In addition, it is exposed that, in the last five years, the level of fraud in bank cards, both contact and ‘contactless’, has grown around 17%, a percentage that, according to their data, will double in the next five years “with the consequent impact on the economy and on the use of these means of payment and against the number of counterfeit notes, which fell in 2019 to the lowest level in the last five years,” recalls the Institute, citing data from the European Central Bank.

Instituto Coordinates makes this analysis in view of the fact that During the social confinement forced by the state of alarm, the use of electronic means of payment has been “triggered”, to the detriment of the use of cash, despite the fact that the central banks of several countries and several institutions have warned that “money is hardly a carrier of viruses, which is not the case with plastic surfaces.” The trend towards a majority use of cards “can have a not inconsiderable impact on the proliferation of fraud in these payment methods,” the institution warns.

Along these lines, the Executive Vice President of the Coordinate Institute, Jesús Sánchez Lambás, has warned that “The levels of insecurity in the electronic means of payment and the consequent fraud will increase, reaching high levels in the coming years”. “Security will certainly increase, as will the ability of hackers and criminals; making it imperative that the levels of use of cash remain equally high to compensate for these deficiencies,” he argued.

Coordinate Institute has explained that the chip that this type of cards carry contains all the bank information of the user and the level of protection it supports “is very low”, therefore, interfering or hacking the signal and the contents or their accesses is “simple” with the available technology. In addition, experts believe that users do not adequately consider the level of risk assumed in this form of payment, so it is “essential” to expand the quality and quantity of the information that users have when they contract these financial institutions with them. payment methods.

According to your data, the impact that grows faster is known as ‘card crash’, which occurs when the user has two contactless cards in their wallet or purse and both interact at the same time and both reflect the charge for a service. Thus, the analysts of the Institute indicate that “it will be essential” to reduce the minimum limit of automatic interaction of these cards, which will require the intervention of the holder to enter their security passwords, which “will surely reduce the universal use.”

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