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Contactless card fraud warning: They can be used months after cancellation
Former_MSE_Faye
Posts: 147 Forumite
in Credit cards
A theft victim discovered crooks using his contactless card EIGHT months later, even though it was cancelled...
Read the full story:
'Contactless card fraud warning: They can be used months after cancellation'

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'Contactless card fraud warning: They can be used months after cancellation'

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Comments
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What?????
AFAIK offline payments are not contactless specific.
And in any case, once the payments are processed I expect the bank/Mastercard/Visa to be able to see "ups, this was done with a cancelled card" and either pass the loss to the retailer, or take the loss themselves.
This looks like a Halifax !!!! up to me. And I fail to see why Faye didn't push further and decide to just write a "you know, !!!! happens" article.
How can you sell this as a "technological weakness in the way contactless cards work" when some banks, looking at the table in the article, do better? It's a !!!! up and , if it's a generalized !!!! up, the regulator should get involved.
When TSB said "It won't be if a card's reported stolen - it will if reported lost." nobody though about asking further? Do you really though that was an acceptable answer?0 -
RedDwarf82 wrote: »
AFAIK offline payments are not contactless specific.
Agree. This isn't about contactless - it's about offline transactions and floor limits.
It's possible that a greater percentage of contactless payments are beneath floor limits due to the lower max value allowed, but someone's slapped the wrong headline on this story.
And then got most of the story wrong as well.0 -
Personally I would only have to trawl through a maximum of about 3 days of transactions to spot a fraudulent oneBank customers whose lost or stolen contactless cards were cancelled may need to comb through months or even years of statements to check for fraudulent transactions, an MSE investigation has found.
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It isn't an offline issue.
Non contactless 'Chip and Pin' cards will need the pin and therefore have that barrier to use by a 3rd party offline.Transactions using the card number over the phone or internet will almost always require online authorisation.
Low value transactions could slip under the radar or look like a normal transaction at first glance.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
The issue is not that the contactless cards can be used for offline payments - that is how they are designed to work to be quick - it is not a flaw.
The problem is that the banks still apply the charge to the account even though it was using a cancelled card number - this should be possible to check and stop later before being put on the bill.0 -
wrong title and a lot of hot air in this;0
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Hi RedDwarf82,
Thank you for your comments. I just want to explain that we know (and the article states) that offline payment isn't exclusive to contactless cards. Chip and PIN payments can go offline too.
The issue is that contactless cards don't require a PIN, so it's much easier for fraudsters to use them to make offline payments on cancelled lost/stolen cards. Many contactless cards are lost or stolen each year, so this possibility is something people should be aware of.
We agree it's shocking that many banks and providers debit payments made on cancelled cards without checking, and our hope is that highlighting the issue will lead to improved policies from banks. The comment from MSE's Steve Nowottny makes our position plain.See the latest news from MoneySavingExpertNews
Follow the MSE on Twitter: @MoneySavingExp
Get Martin's Money Tips
Join the MSE Forum0 -
The actual value they'll be able to put through using contactless is relatively small though, all cards are forced online fairly regularly.
Mountain and molehill springs to mind.The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.Bertrand Russell0 -
Is it true that Visa set a floor limit of £15 and any contactless transaction above that amount goes online? I don't use contactless myself (although I have used Android Pay with a Visa debit card a few times for lower amounts) but I thought the limits were higher than that.0
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TSB online banking, under the 'help' relating to available balance, states that your available balance won't include cheques written and waiting to be paid in (!!) Or "most contactless payments under £15".
I did think £15 was a weird number to put on - either it's 'most contactless payments' (as it's an offline card) or it's not.... so the visa rule sounds right
Now I want it, I can't find the page to quote it!0
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