How Safe is Your Credit Card ?

Experts are warning our bank details could be stolen out of thin air by electronic pickpockets.

It comes with the introduction of "contactless cards", which shoppers wave over a reader at the counter to pay for goods....


Fraudsters in the U.S. and the UK are using handheld devices that cost as little as $11 on the internet to collect our personal information and they can swipe it in seconds by simply walking past us in the street.
So how safe are our credit cards here in Australia? Alastair MacGibbon, the Director of the Centre for Internet Safety at the University of Canberra and publisher of credit card comparison website CreditCardFinder.com.au, Jeremy Cabral discuss.
How do these thieves steal such private information, so easily?
The crook buys a contactlless reader which can pick up the RFID signal emitted from the card and then captures basic card details like your credit card number, expiry date and the name on the card. They can then use those details to shop on the Internet in what's known as a "card not present transaction". They can't replicate your card because of the chip in it, so they go for the soft underbelly which is internet and phone transactions because they don't ever get a card presented to them: it is impossible to tell if it is the legitimate cardholder.
How much money could they potentially swipe from us?
Up to your credit/debit limit or until the fraud is detected by the issuing bank or the card scheme. It is a lucrative fraud and an easy fraud. Overall, card not present fraud is the growth area for credit card frauds.
Why are banks pushing these so-called "contactless cards" into our hands?
Banks ultimately have the opportunity to make more money from credit card transactions, and can have more access to your payment data / purchasing trends for small purchases (typically ruled by cash payments). It is important not to ignore the positives - It is actually more convenient for small purchases, saves us going to an ATM, as it can save us time (up to 30 seconds) for over the counter payments.
What are the dangers of a card you don't have to sign or pin for?
Your credit card is able to be used by someone else for transactions up to $100 without any pin or signature. Your card could be used on websites that don't require the three digit CVC security code. It's important to consider that a thief would get more value out of stealing your entire wallet, or your physical card itself. Not having to take your card out of your wallet could be a security benefit in the sense that you reduce the risk of losing your card or leaving it behind with a merchant.

How can we keep our credit card safe?

• Limit the amount of money in your 'contactless' account
• Monitor your bank accounts online
• If you think you've been compromised, call your bank
• Protective foil-lined wallets are available
• Consider a card without 'contactless' technology