September 22, 2005
RFID and credit card frauds
Contactless payment technology, as exemplified by contactless credit cards is susceptible to theft of data by the use of tag readers. If the information that is present on credit cards falls into the wrong hands, it can be used for perpetrating frauds such as opening credit card accounts under the owner’s name and billing address and preparing fake debit cards to access bank accounts.
Some banking institutions do not require authorization for credit card purchases below a certain amount. This can lead to a significant lapse of time before a theft is discovered. A solution to prevent theft of information would be to add a switch to the card that would enable the use of the card only when it is on. Another alternative is biometric identification. However, even though it is more effective, the technology costs more to implement. Switch-on cards are easy to use and can be produced cheaply. They offer security against theft of information and can act as catalysts to promote the widespread use contactless payment methods.
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