Feeds

Kid crims don't need to skim: Paywave cards lead fraud rise

Fraud experts disagree: Tap'n'go won't get cash for a stash

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Victoria Police's top brass have criticised Australian banks for a rise in contactless credit card fraud arising from stolen tap and go cards.

Chief commissioner Ken Lay told reporters theft of the cards - which did not require proof of ownership for purchases under $100 - had contributed to a 48 percent rise in deception crime over the last twelve months across the Garden State.

"The banks simply need to do more to crack down on this," Lay said.

"It is simply not good enough and it's not good enough for the banks simply to say 'oh we'll cover the cost'".

His deputy Lucinda Nolan said children as young as 10 had stolen the contactless cards to make fraudulent purchases.

"We are very, very concerned with the trend and correlation between tap and go and residential burglaries in particular," Nolan told reporters.

"From a personal perspective, i'd like to see them scrapped."

Cards were stolen from mailboxes and houses, she said, noting crime was up 5 percent across the state.

But one fraud expert formerly working at a major Australian bank said the alarm could be a red herring because police had little visibility into more damaging and prolific online fraud.

"People report their wallet getting stolen to the police [but] they do not report their card number being used for card not present [fraud]," he said.

"Police don't generally see most of the day-to-day banking fraud that goes on as it isn't reported, so [contactless fraud] looks like a crime wave when it's really a drop in the ocean value wise."

He suspected contactless fraud could be on the rise among drug users due to its high liquidity, citing figures in a Victoria Police report that robbery had declined 12 percent. He suggested pinching contactless cards could lend to a reduction in muggings and physical assaults.

Mastercard Australia Andrew Cartwright said the company's statistics did not show an increase in fraud against contactless cards.

Researchers have since 2006 developed a variety of hardware and software platforms to steal contactless cards via wireless transmissions. Some were able to break through protective wallets.

Researcher Kristen Paget developed a wallet protector dubbed Guardbunny which squealed a high-pitched sound and illuminated the eyes of the bunny logo glow (as pictured) when RFID signals were detected. ®

New hybrid storage solutions

More from The Register

next story
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Google recommends pronounceable passwords
Super Chrome goes into battle with Mr Mxyzptlk
Reddit wipes clean leaked celeb nudie pics, tells users to zip it
Now we've had all THAT TRAFFIC, we 'deplore' this theft
YouTube, Amazon and Yahoo! caught in malvertising mess
Cisco says 'Kyle and Stan' attack is spreading through compromised ad networks
TorrentLocker unpicked: Crypto coding shocker defeats extortionists
Lousy XOR opens door into which victims can shove a foot
Greater dev access to iOS 8 will put us AT RISK from HACKERS
Knocking holes in Apple's walled garden could backfire, says securo-chap
Microsoft to patch ASP.NET mess even if you don't
We know what's good for you, because we made the mess says Redmond
NORKS ban Wi-Fi and satellite internet at embassies
Crackdown on tardy diplomatic sysadmins providing accidental unfiltered internet access
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.