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Fresh fears over risks of contactless cards

Fresh fears over risks of contactless cards

New research from the University of Surrey warns about the security of ‘contactless’ payment cards following a study in which they proved the technology was susceptible to fraud. The technology is also being used in mobile phones.

In a recently published article in the Journal of Engineering, the magazine of the Institution of Engineering and Technology, researchers said they “successfully received contactless transmission from distances of 45-80cm using inconspicuous equipment.” The banking industry has always insisted the data on cards could only be read within 5cm distances.

A bit of wire wrapped around a cylinder

Loop antenna used to capture contactless transaction

However, PCM would argue that if any member of the public saw the contraption pictured to pick up the signal in, say, Boots, they may well have their suspicions.

The authors of the study said their findings “highlighted security concerns to personal data” and warned the “implications for consumers were significant”.

Almost all banks issue contactless cards and now over 40 million are in circulation. The technology has been dogged by fears and suspicions that payments could be made by accident or that customers’ bank details – such as account numbers and transaction data – could be captured by fraudsters or “electronic eavesdroppers”.

Earlier this year customers in Marks & Spencer, one of the first chains to make the card readers widely available, had paid by mistake.

Last week The Telegraph reported that one bank, First Direct – whose Visa debit cardholders are automatically issued with contactless cards – had quietly altered the terms of its contracts regarding the use of the cards, insisting that customers remove them from their wallet before paying. This was seen as an admission the technology could lead to mistaken payments.

The banking industry strenuously refuses such claims. It insists: “The technology is extremely robust, has been thoroughly tested and is working as expected. Payments can only take place where the card is placed within 5cm (2 inches) of the terminal.”

This was apparently disproved in the University of Surrey’s research, which found that by using “portable, inexpensive and easily concealable equipment” eavesdropping could be “reliably carried out at various distances.” It said “good reception was possible even at 45cm when the minimum magnetic field strength required by the standard is in use.”

The post Fresh fears over risks of contactless cards appeared first on Payments Cards & Mobile.

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