ATM Fraud with Contactless Cards on the Rise: How to Stay Safe?

The advancement of banking technology has brought convenience, but it has also opened new opportunities for fraud. Among the latest scams, criminals have been exploiting the contactless payment function (NFC) in ATMs to steal customer data and funds in a silent and sophisticated manner.

How Does the Fraud Occur?

Fraudsters use concealed devices on ATMs to intercept communication between the customer's card and the terminal. The main tactics include:

• Clandestine NFC Readers: Small devices are installed near the terminal to capture card data as soon as the customer taps the card to make a transaction.

• Phantom Transactions: Some criminals use equipment that mimics the bank's NFC interface and induce transactions without the user noticing.

• Forced Proximity: Fraudsters with portable readers position themselves near ATMs or crowded areas to try to capture information from cards that have NFC enabled.

How to Protect Yourself?

Faced with this new type of threat, banking security experts recommend the following precautions:

• Disable NFC when not in use: Many cards allow temporary deactivation of contactless payments via the bank's app.

• Cover your card when making transactions: Just like shielding the keypad when entering your PIN, preventing your card from being exposed can reduce risks.

• Avoid using contactless at suspicious ATMs: If you notice any modifications to the terminal, prefer inserting the card manually and using a PIN.

• Use NFC security devices: Some advanced solutions can detect intrusive signals and protect the transaction.

Security Solution: NFC Safe Shield

To ensure customer protection, Ebrax has developed the NFC Safe Shield, a sensor capable of performing real-time scanning and identifying suspicious NFC signals at ATMs. When a risk is detected, the device blocks the interception attempt, ensuring that the transaction takes place securely.

With the increasing sophistication of banking fraud, prevention and the use of security technologies are essential to avoid losses. Staying alert and protected is the best way to ensure that your banking experience remains convenient and safe.