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Technology popular among Brazilians can pose risks: learn how to prevent fraud in the contactless payment system and understand how this type of scam works.
Contactless payments have gained a lot of traction due to the ease and speed they offer users when making transactions. This popular technology allows transactions to be completed without the need to insert a card or enter a password, thus ensuring a faster experience when making a purchase. However, contactless payments also pose some challenges, especially when it comes to the security of users' financial data.
How payment fraud occurs
As contactless payment systems have grown, concerns about vulnerability to fraud have come to the fore. The growing popularity has been accompanied by an increase in attempts to exploit potential flaws in the system, making security a priority for both users and retailers.
Fraudsters often attempt to compromise the security of this popular transaction technology by manipulating payment terminals. One common method involves installing devices or software that intercept card signals.
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The main methods of fraud in the contactless payment system include the use of fake readers that capture card information, interference with terminals to divert data during transmission, and cloning cards using intercepted electronic information.
There are several measures that can be taken to increase the security of contactless payments. One of them is regular monitoring of banking activities through mobile apps, which allows the user to detect unusual activity quickly. These measures can include: setting alerts for each purchase made, using physical protections for the card that block unauthorized reading, and immediately reporting any unknown transactions to the bank.
Safer contactless payment system for retailers
Merchants also play a vital role in ensuring that their contactless payment system is protected against fraud. This involves not only regular maintenance of terminals, but also training employees to spot suspicious activity.
Implementing these practices includes implementing security updates regularly and directly from trusted vendors, monitoring and restricting access to terminals to prevent unauthorized manipulation. It is also essential to provide periodic training on new fraud and financial security techniques.
The rapid evolution of popular technology demands that consumers and retailers constantly update their security practices. Staying informed about the latest threats and technologies available allows for more effective implementation of preventative measures.
In this way, security-focused workshops and training have become essential tools for reducing risks. With collaboration between the parties involved in the payment chain, it is possible to create a safer environment, reducing vulnerabilities and ensuring that contactless payments remain reliable and efficient for all users.
Growth of contactless payment systems
The technological revolution and increasing digitalization have significantly impacted the payment methods sector. In the Payment Methods statisticsopen_in_new, released by central bank (BC), there has been a progressive increase in the use of digital payment instruments by the population. In the latest data collected by the BC, released at the beginning of June, and which refer to the year 2023, a new form of payment has been increasingly used by the population: contactless transactions.
According to a survey by the BC, the percentage of credit card transactions carried out by approximation grew significantly in comparison with other forms of capture (strip, chip and non-face-to-face) from 23,1% to 31,1% in the quantities transacted in the last quarters of 2022 and 2023.
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