These cards required insertion into payment terminals and authentication with a PIN, marking a shift toward more secure transaction methods.
These cards were still susceptible to cloning or information theft, though perpetrating such crimes was more challenging than with magnetic stripe cards.
Near-field communication, or NFC, evolving from radio frequency identification, emerged as a new payment standard in the latter half of the 2010s.
With this technology, the original chip-based cards have become even more useful, as instead of having to insert them into payment terminals and ATMs, all it takes is a tap onto an NFC-enabled payment device to transfer money.
The process through which NFC payment works operates quite similarly to Bluetooth or other wireless communication systems, utilizing radio waves to activate and verify the information being transmitted.
Specifically, in the case of a payment, the terminal receives information from the phone, which it then processes and approves to facilitate the transaction.
As opposed to regular card skimming, NFC communication is encrypted and tokenized - meaning that a card can hardly be duplicated thanks to its information being hidden.
While it is true that NFC technology is more secure, especially when it comes to making payments, it doesn't mean that it is infallible, as malicious actors can easily exploit certain vulnerabilities to get what they want.
What's more, since NFC payments are inherently built based on the aspect of convenience, there is a lack of additional authentication that a regular chip-based card would require, for example.
If someone does steal your credit card, they can easily make fraudulent payments without them needing to input a code, and depending on your set payment limits, the sums can be quite high.
Both payment services only work when enabled, so there is less of a chance of someone just leisurely initiating a payment from you.
While smartwatches are great in many ways, enabling payments through them might be problematic, primarily due to the lack of additional authentication beyond a short PIN required to unlock the watch.
To end this article on a more positive note, there are ways you can make your contactless payments more secure.
Try RFID blockers - These are small cards or wallets that create a barrier between your card and the outside world, mitigating potential skimming attacks.
Set up low payment limits - This can be done through your bank or their software, wherein you can set a maximum limit on how much you can purchase through contactless payments.
Use phone payments - Even though these apps can have their flaws, they are still a bit more secure than contactless cards, thanks to additional authentication requirements.
Skip smartwatches - Due to lower security, enabling payments on smartwatches might pose potential problems.
Get a travel card - If you're worried about the express payments angle, get a top-up travel card, if possible, instead of using your own credit card/phone as a means of paying for tickets.
These are just some methods you can employ to have more secure payments.
Before you go: Mobile payment apps: How to stay safe when paying with your phone.
This Cyber News was published on www.welivesecurity.com. Publication date: Fri, 08 Dec 2023 09:58:40 +0000