ClubCJ - The CJ Lancer Club

http://www.youtube.com/watch?v=GJbtMclbatU


Has any others heard of this Scam with Credit Cards ? And We Thought our cards are safe in our Wallets and Purse's ....

Didn't watch it all but it looks like it's merely exploiting the contactless payment cards (i.e. Paywave/Paypass). I agree this is a known issue because the cards require a distance <5cm to be accepted so you have to get pretty close/touching for it to work, but also keep in min that like all CC transactions, you are typically covered by your financial institution for unauthorised transactions.

Also note that contactless payments/card-not-present frauds are still relatively small because transaction size is capped at $100 per card before a signature or PIN is required to be validated.

That all being said, if you don't review you statements for abnormal or unusual items then unless the scammers are using your cards in exotic locations which trigger the location-based trend analysis (i.e. you can't move from Sydney to London in 20minutes) then it's highly unlikely that you'll ever know you've been conned.

Quite a big loophole in the technology, tho I'm sure they will fix it down the track. What they should've done is when the card is swiped thru a magnetic field, that causes the closed loop circuit to energise and transmit it's details via radion signal, is have the details stored in a (what we call one-way hash) crypographically secure format. The crypto formatted message is send to the EFTPOS terminal 10cms away and they encrypted details are sent to the bank (not in clear format).
The encrypted details would be meaningless for anyone using the above scam, because they dont have the the "ki" (authentication key). Only the bank has the "ki" to de-crypt the encoded message, that turns into something useful to authorise the payment. Of course there is a slight security hole in this system too, but better than nothing.

Thankfully, none of my credit cards are of that type.

Blah, I've got a Paypass. Guess it's a good idea to check the statements regularly then. Or buy a lead wallet...