Ghost Tapping Alert: New Contactless Payment Scam Drains Bank Accounts

The Better Business Bureau (BBB) has issued a stark nationwide warning. A new scam dubbed “ghost tapping” is targeting consumers. It exploits popular tap-to-pay credit cards and mobile wallets. This fraud can drain accounts with unsettling ease.This scheme highlights a growing vulnerability in modern payment systems. Scammers use portable card readers to make unauthorized charges. They often do this without any physical card theft required.

How the Ghost Tapping Scam Operates

Criminals use several clever tactics to execute this fraud. They often bump into people in crowded places. A hidden card reader in a bag or pocket can initiate a charge during this brief contact.Another method involves fake vendor booths at festivals or markets. Scammers pose as legitimate sellers. They ask for a tap payment for a small, appealing donation or item.They then charge a much larger amount to the victim’s card. The criminals rely on haste and distraction. Victims often tap without verifying the final transaction amount on the terminal.

The Real-World Impact on Victims

Reports to the BBB Scam Tracker reveal significant losses. One individual reported a scammer going door-to-door. The fraudster pretended to sell chocolate for a fake charity.He insisted on tap-to-pay only. The victim’s mother was charged $537 without her knowledge. Another person in the same neighborhood lost over $1,100.According to local news outlet KY3 News, a Missouri resident lost $100 to a similar scheme. The financial impact can accumulate quickly. Small, repeated charges may go unnoticed for some time, allowing scammers to steal more.

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Protecting your finances requires immediate action if you suspect fraud. Contacting your bank and monitoring statements are the best defenses against this rising threat of ghost tapping.

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How can I protect myself from ghost tapping?

Be cautious in crowded spaces. Shield your wallet or phone from unsolicited contact. Always verify the transaction amount and business name on the payment terminal before tapping.

What should I do if I’m a victim?

Contact your bank or card issuer immediately. Cancel or freeze the compromised card. Report the fraudulent transaction to the BBB Scam Tracker to alert others.

Do banks refund money lost to this scam?

Most financial institutions have fraud protection policies. Prompt reporting is crucial for a successful reimbursement. The speed of your action significantly impacts the outcome.

Why is this scam hard to detect?

Scammers often make small, initial charges to avoid triggering fraud alerts. These minor amounts can be easily overlooked on a bank statement, allowing larger thefts to occur later.

Are certain cards more vulnerable?

Any contactless-enabled card or mobile wallet is potentially at risk. The technology itself is secure, but the method of exploitation relies on human distraction and proximity, not a system breach.