Ghost Tapping Isn’t a Halloween Prank

The BBB is warning about recent reports of “ghost tapping” scams. While this may sound like a Halloween prank, it’s anything but funny.

Ghost tapping takes advantage of Near Field Communications (NFC), the technology embedded in many payment cards and smartphones that allows tap-to-pay functions. In crowded or distracting environments, bad actors can try to steal money from unknowing victims  using this method, especially if the targets are holding their credit cards or phones. They may also bump into a victim to get close enough to complete the theft.

Many devices, like iPhones, have safeguards (like user confirmation) to prevent unintended charges. Also, the technology in payment cards and smartphones only completes transactions at extremely close range—within centimeters. These features make it difficult for criminals to steal money without contact with their victims, although it is not impossible.

More commonly, individuals may have money stolen in transactions they initially agreed to. Fraudsters may appear to offer a legitimate sale or solicit money for a charity, but with tap-to-pay as the only payment method. Often, these contactless payment methods do not display the amount being charged, particularly if the receiving party uses a mobile device or adapter. The scammer can then take advantage of the lack of transparency and charge much more than originally stated.

To better protect yourself against ghost tapping, keep the following tips in mind:

• Set up transaction alerts for your financial accounts. Most bank accounts and credit cards offer transaction alerts in their online settings, providing users with an email, text message, or smartphone notification when transactions occur. Enabling these can allow for better and faster monitoring than monthly statements allow, helping you catch unwanted payments.
• Avoid payment receivers that don’t display the charged amount. These are more common with mobile devices that may be found at farmers markets, pop-up booths, or door-to-door solicitors.
• Keep payment devices tucked away when not in use. Carrying bank cards, and to a lesser extent your smartphone, in the open when not in use can increase the chance of an unwanted tap payment.

Reporting Scams

If you suspect you’ve encountered a scam:

• File a complaint at Fraud.org: We will share your complaint with our network of consumer protection agencies and law enforcement partners.
• Report it to the FBI: Use the IC3.gov website to report directly to the agency.
• Inform the FTC: File a complaint at ReportFraud.ftc.gov.