Dangers Of Contactless Cards (2024)

The dangers of using a contactless card have to do with the possibility of skimming. But even though it’s possible for fraudsters to collect some data from your credit card, the information they would be able to capture is usually not enough to complete a purchase.

That’s because a typical card transaction requires the account number, the expiration date, the security code on the back of the card (CVV) and/or the ZIP code from the billing address.

Safety Concerns About Contactless Cards

• Short-range skimming.
  The technology behind contactless cards is based on a short-range radio frequency identification (RFID) antenna, that only transmits digital data within a very small range. "Skimmers" could use RFID readers to extract data from contactless cards from a very short distance and use that card data to access your account information and steal money.
• Duplicating cards.
  Contactless credit cards still have a magnetic stripe, so the info from the magnetic stripe can be cloned and used by others. But the stolen information would only work for swiped purchases. Even in cases like this, though, an issuer’s fraud liability guarantee protects you from having to pay for unauthorized transactions made with your card.
• Lost or stolen cards.
  Although contactless credit cards are secure in terms of technology, there is a downside for lost and stolen contactless cards. Usually, when making a contactless payment, no PIN or signature is required for small purchases. So, if your card is lost or stolen, it could be used by someone else without easy detection.

When you make a payment with EMV chip cards and contactless credit cards, they provide the reader with a unique, one-time code that identifies the transaction. This number is dynamic and cannot be copied. So, both EMV chip cards and contactless credit cards are more secure than swiping your card’s magnetic stripe.