How safe are contactless cards? The three banks that ‘allow thieves a spending spree’ revealed
BARCLAYS, the Co-operative Bank and TSB let crooks spend £200 on stolen contactless cards undetected, a consumer group has discovered.
In a test to expose which banks risk putting their customer’s cash in the hands of criminals, Which? ‘stole’ 12 contactless credit and debit cards to see how much cash they could nab.
With each of the three worst performing cards, belonging to Barclays, the Co-op and TSB, the ‘thieves’ were able to make 10 different payments, spending over £200 with each bank in total.
Despite the fact hundreds of pounds was being spent through multiple transactions, none of the three banks requested a pin or blocked the card.
Normally, there are two ways of maintaining security when using contactless cards, namely a £30-per-transaction limit and a request for a pin code.
While contactless cards have paved the way for more convenient payments, many people remain concerned about their security credentials.
RELATED STORIES
In a survey of over 1,000 people, nearly 70 per cent told Which? they are concerned about their contactless cards being stolen and used.
A spokesperson for Barclays told The Sun Online: “We have no higher priority than the protection of our customers’ funds and use a number of tools to monitor and identify suspicious transactions.
“Customers are not held liable for any unrecognised transactions after a card has been reported lost and stolen.
“All transactions made following a card being reported lost and stolen are checked with the customer and will not appear on their account if fraudulent.”
The Co-op told Which? That the contactless function involves a risk to the bank, which is closely controlled and monitored.
TSB told Which? Its debit cardholders are no more vulnerable to contactless fraud than customers of other UK card issuers.
Credit cards from Barclaycard, Halifax and Santander fared better in Which’s? contactless test, as did debit cards from First Direct, HSBC, Lloyds, Natwest, Nationwide and Santander.
In every case where the bank performed well, card users were asked for a pin or had their card blocked after between three to five transactions, Which? said.
Going one step better, Barclaycard, Nationwide and Santander also texted or called the genuine card owner to check the multiple transactions were genuine.
Anyone worried their contactless card has been stolen and used should contact their bank immediately and check their statements for any unexpected transactions.
Day to day, contactless card users can take a number of steps to protect themselves. Even covering your card with tin foil while its in your pocket can help.
Some, but not all, banks give customers the option of opting out of having a contactless card, including Halifax and HSBC.
We pay for your stories! Do you have a story for The Sun Online news team? Email us at [email protected] or call 0207 782 4094