The Better Business Bureau has released a new alert regarding scams that target tap-to-pay chips in credit cards and mobile wallets.

Dubbed “ghost tapping,” these frauds exploit near-field communication (NFC) technology found in contactless payment chips and digital wallets, enabling data exchange over short distances. Victims may not even realize the scam is happening, especially in crowded areas like festivals or train stations where a criminal could get close enough to use a wireless payment reader without the victim’s knowledge.

In other scenarios, criminals masquerade as vendors or charity fundraisers and entice victims into making small tap payments. These minor transactions might not trigger fraud detection systems, allowing the perpetrators to go unnoticed for some time before using the stolen information to make unauthorized charges.

Widespread Scam Operations

Ghost tapping can be highly insidious because once payment card data is compromised and loaded into mobile wallets, criminals can transfer that information across multiple devices. Contrary to what one might assume, these scams are often the work of well-organized networks rather than small-time crooks.

According to Recorded Future’s Insikt Group, these operations involve a significant infrastructure, including both the distribution of phones and phishing software used in ghost-tapping frauds. The Insikt Group has also documented recruitment efforts via messaging platforms, suggesting a growing market for goods obtained through this method.

Preventing Ghost Tapping

To protect against these scams, the Better Business Bureau suggests using RFID-blocking wallets or sleeves to safeguard credit cards. For less than $10, such sleeves prevent unauthorized detection of radio signals emitted by card chips.

Before making a tap payment, consumers should carefully check the merchant’s name, transaction amount, and details displayed on the terminal screen. Additionally, limiting tap-to-pay usage in high-risk areas like farmers markets or crowded retail stores could enhance security. Instead, swiping or inserting cards is recommended.

Lastly, setting up transaction alerts with banks and regularly reviewing account statements can help detect suspicious activity early. If any signs of fraud are noticed, consumers should promptly contact their bank or card issuer to report the issue and cancel the compromised card.