The roll-out of contactless cards by banks will increase the
risk of fraud from electronic pick-pocketing, according to Identity
Stronghold.
A study by the RFID security
sleeve provider showed that the issue of radio frequency
identification (RFID) chip-enabled contactless cards would increase
the risk identity and financial theft.
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Walt Augustinowicz, founder and CEO of
Identity Stronghold said:
“It’s very apparent that contactless cards are
being pushed onto the cardholder without proper notification of the
security risks, to include what preventative measures can be taken
to avoid being electronically pick-pocketed.”
Other forms of contactless payments such as
mobile wallets will also increase this risk, the study found:
A quarter of mobile banking programmes that
were analysed received a fail rating, often due to the tester’s
ability to recover sensitive data or passwords.
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By GlobalDataThe card industry is working towards a
roll-out of one billion contactless cards by 2016.
