Mobile payment fraud is the fastest growing sector
Mobile payments and cashless transactions are fast becoming ubiquitous, with many leading consultancy firms projecting that by 2020 we will have forgotten how to write a check or use an ATM.  But as the ease-of-payment system gains global popularity, it also becomes a key frontier for cyber criminals.  A recent study by Which? in the UK shows just how easy it is for thieves to purloin critical data from your contactless payment debit card, and Bloomberg highlights that whilst mobile payments now make up 14% of all transactions at the merchants that accept the system, they also account for 21% of all payment frauds.

Contactless payments are on the rise (Picture: Getty)

Thieves could exploit a security flaw to steal key data from contactless debit and credit cards using equipment readily available online, consumer group Which? has warned.

It said it used ‘easily and cheaply’ acquired technology from a mainstream website to take enough information from cards to place orders for items including a £3,000 television set.

Researchers tested six debit cards and four credit cards, and Which? said they all revealed some data.

A spokesman said: ‘Contactless cards are coded to ‘mask’ personal data, but using an easily obtainable reader and free software to decode data, we were able to read the card number and expiry date from all 10 cards.

MORE : Are these really mutant daisies at Fukushima?

‘We were also able to read limited details of the last 10 transactions, although no cards revealed the CVV security code (the number on the back).

‘We doubted we’d be able to make purchases without the cardholder’s name or CVV code – but we were wrong.

‘We ordered two items – one a £3,000 TV – from a mainstream online shop using ‘stolen’ card details, combined with a false name and address.’

MORE : Girl, 12, dies during school trip in France after accident at a lake

Contactless payment continues to grow rapidly in popularity, with more than £2 billion spent through the system last year, according to the UK Cards Association.

The limit for a single contactless transaction is £20 – but from September 1 onwards a higher limit of £30 will be rolled out.

The Which? spokesman said: ‘By touching volunteers’ cards to our card reader, we got enough details to allow us to go on an internet shopping spree. With these card details, the contactless transaction limit is irrelevant, because online transactions aren’t contactless.’