Mobile phones and computers have long become an integral part of our lives, and not just as means of communication. Contactless payments via smartphones and cards — a technology that originated from America — is increasingly popular every year. Last year, over 50% of transactions in retail networks in Ukraine were made contactlessly.
However, with convenience and new technologies come modern types of theft. Now, fraudsters only need a few seconds and a special device to read data. They've learned to steal money "remotely" using the RFID technology. In reality, this acronym is represented by a chip in your card or smartphone, simplifying minor payments. For instance, in 2015, the amount stolen using RFID readers in Russia reached 2 million rubles. In Ukraine, this problem is only gaining momentum.
The Bagston store network will help you understand this topic in more detail and explain how you can protect yourself from card fraudsters.
What is RFID?
RFID (Radio Frequency Identification) — radio frequency identification — arrived last century. In simple terms, it's a contactless communication using radio signals. Tags, those same chips, can now be found almost everywhere. Ever had an "alarm" go off at a store exit frame? That could've been an RFID tag — a simple sticker inside a book or in the pocket of new clothing. Not to mention metro passes or discount cards. RFID systems are most commonly used for industrial purposes — tracking luggage, product control, even livestock tagging. We must admit, this technology has significantly simplified our lives on many levels.
However, one type of RFID technology was considered in the banking system. Namely, NFC (Near Field Communication). It's the same RFID system, but it operates only at short distances - up to 5 cm. Using this connection, we can make payments with a smartphone or card in just a few seconds.
Today, almost every smartphone supports the NFC function. To activate it, all you need is a free app that anyone can download. The terms of use for contactless payments may vary depending on your bank's service conditions. However, in general, the technology is straightforward, convenient, and, most importantly, available to everyone.
How does the money disappear?
Every motorist has heard of thieves intercepting signals from electronic locks and then easily dealing with the alarm. The same scheme works with contactless cards.
To withdraw funds, fraudsters need a special RFID reader. Legal devices are freely available today and cost from 10,000 UAH. Criminals, however, build their readers, components for which are not difficult to order. Their cost is only about $100.
Scanning usually takes place in crowded areas — in public transport, overcrowded stores during peak hours.
How to protect yourself?
No need to panic. Protecting yourself from such theft is quite easy. After all, contactless cards are considered safer than traditional ones.
To use an RFID reader, it needs to be almost directly against the card. So, it's important to watch your pockets and wallets. Also, a device's signal can be disrupted by several cards lying together.
One quite effective way to keep your money safe is to keep your card in protective cases or compartments with RFID-blocking. This technology is used in new models of bags and backpacks from trusted brands like National Geographic and CAT. Special pockets shield signals from readers and securely protect your data.
Find more products using this technology at the link.
Being protected is a personal choice that's never redundant.
