The rise of contactless transactions, better known as Paypass and Paywave payments, have allowed us to purchase things quickly and easily. We’ve provided some tips to help you understand how contactless payments work, the dangers of them, and how you can keep your money and data safe!
What are contactless payments
A contactless payment is the act of placing your card on or near an EFTPOS (Electronic Funds Transfer Point of Sale) machine, rather than inserting or swiping your card. The two forms of contactless transactions in Australia are Paypass and Paywave. These payments make the process of purchasing quicker, which benefits both the customer and the retailer. Paypass and Paywave are available at most shops and are becoming increasingly popular.
The dangers of contactless payments
Although contactless payments seem to be the way forward for our inevitable cashless economy, there are some dangers to be aware of. Debit and credit cards now have chips which utilise antenna communication. However, this level of efficiency has opened the door to a whole new form of fraud.
Hackers are now using RFID (radio frequency identification) machines to scan people’s cards and the signals the cards give, which posses the card’s details. These machines can be purchased and illegally programmed for as little as $50 by anyone. The machines simply need to be situated near a card to obtain the details. Hackers generally look to public places such as public transport or shopping centres to get close to wallets and handbags and steal your card data.
How you can protect yourself
Card sleeves are an affordable and easy way to keep your cards safe from criminals. The cards act as a barrier from the frequency used by the RFID machines. This makes it difficult, if not, impossible, for hackers to obtain the data. The cool part of these is their cheap price, which can save you a fortune and protect your identity and money.
Similar to card sleeves, RFID proof wallets and passport holders serve the purpose of providing a barrier from potential hackers. These items range in price but are practical and look just like an average wallet, only with far more protection!
in most cases, banks are willing to refund any lost money from fraud – provided they’re informed early. We recommend you stay attentive to your accounts. If your card gets lost or stolen and you don’t get to lock it in time, banks are able to track when potential contactless transactions have occurred and you’ll also be refunded.
Frollo Tip: Using Frollo can help minimise your risk and help you track your account easier. See all your transactions in the clearest way imaginable. You’ll be surprised how easy Frollo makes staying on top of your money.