Tap to Pay Fraud: Myths, Real Risks and How to Stay Safe

Tap to Pay (commonly known as paying with a digital wallet or tapping your card for payment with NFC) has transformed the way we pay - fast, convenient and securely. Contactless payments have seen explosive global adoption, driven by speed, convenience and hygiene benefits. Whether you're in New York, London, Rio de Janeiro, Johannesburg or Sydney, millions of people now tap their cards or digital wallets using Near Field Communication (NFC) technology to pay in just a second or two¹.

But as the adoption grows, so do fears of fraud. Headlines about "digital pickpocketing", card cloning and contactless theft have created confusion. Can criminals really steal your money just by standing near you? Are contactless cards less secure than Chip-and-PIN?

How real are these risks? Are criminals actually exploiting contactless payments, or is it mostly hype? Lets separate fact from fiction and explore how to protect yourself while still enjoying the benefits.

Separating Fraud Facts from Fiction

While tap to pay is built with security in mind, fraudsters are always trying to find new loopholes. However, many of the fears around contactless payments are based on myths rather than reality.

NFC Skimming: The "Wireless Pickpocket" Reality Check

The Claim: Some reports suggest that criminals use small, hidden NFC readers to steal card details from unsuspecting people in crowded areas like subways, malls or stadiums. The idea is that if they get close enough to you, they can "tap" your card and access your money.

The Reality: This threat is vastly overblown. Every tap generates a unique transaction code using dynamic encryption. This means that even if a scammer intercepts a payment, they can't reuse it for another transaction². Unlike magnetic stripe cards, contactless cards use EMV tokenisation and dynamic encryption, making card cloning nearly impossible with NFC technology³.

Even if a fraudster manages to capture your card number and expiry date through skimming, they won't have the CVV or PIN required for eCommerce transactions⁴. Most online purchases require additional security measures, such as entering a CVV number or completing two-factor authentication (3D Secure, biometrics or one-time passwords)^5-6.

Banks and payment providers follow EMVCo and PCI DSS security protocols specifically designed to prevent this type of fraud⁷. Recent academic research from 2024 confirms that contactless fraud remains a tiny fraction of total payment fraud, with specialised security measures making NFC skimming attacks largely ineffective⁸.

Fake Payment Terminals: A More Realistic but Limited Risk

The Threat: Criminals setting up fake payment terminals in high-traffic areas that capture your details instead of processing the payment.

The Reality: While this is technically possible, the chances of encountering a fake terminal in a legitimate retail environment are very low⁹. Banks closely monitor transactions for suspicious activity using AI-powered fraud detection systems¹⁰, and most fake terminal operations are quickly detected and shut down.

Recent industry data shows that traditional card fraud methods like eCommerce skimming and phishing remain far more prevalent than fake terminal attacks¹¹.

Stolen Contactless Cards: The Real Vulnerability

The Risk: If someone physically steals your card, they could make multiple small purchases using tap to pay, as most systems don't require a PIN for low-value transactions.

The Protection: Banks and card issuers worldwide have strict limits on tap payments, restricting the number of consecutive tap transactions before requiring a PIN or blocking the card¹². Many banking apps also let you disable tap payments instantly if your card is lost or stolen.

Industry statistics show that contactless fraud from stolen cards remains relatively low - in the UK, contactless card fraud losses were £34.9 million in 2022 despite billions of transactions¹³.

What this Means: Contactless vs. Traditional Security

Contrary to popular belief, tap to pay transactions are actually safer than chip-and-pin transactions¹. Contactless payments use EMV tokenisation, encryption and real-time fraud monitoring without exposing your actual card number, making them more secure than inserting a card into a machine where skimmers can be installed¹⁴. Global payment providers like Visa and Mastercard confirm that contactless payment fraud remains a tiny fraction of total card fraud - far lower than card-not-present (CNP) or data breach fraud^15-16. Recent payment fraud research from 2024 shows that contactless card fraud rose by only 21% despite massive increases in usage, while traditional fraud methods like eCommerce and phishing attacks continue to dominate¹⁷. Traditional card fraud techniques like phishing, ATM skimming and social engineering remain far more common and effective than any contactless exploits.

How Banks and Payment Providers Keep Tap to Pay Safe

Financial institutions globally invest billions in fraud prevention to ensure tap to pay remains safe and reliable. Here are the ways that they protect you: 

• Tokenisation and Encryption: Every tap generates a one-time-code that cannot be reused¹.
• Fraud Detection Systems: AI-powered tools flag unusual transactions in real time¹⁸.
• Low-Value Tap Limits: Many banks limit tap transactions to prevent excessive fraud. Most banks allow you to set your own tap limit too.
• Instant Card Blocking: If you lose your card, you are able to disable tap payments in seconds using most mobile banking apps.
• Liability Protection: Most issuers provide liability protection, ensuring that you are not responsible for fraudulent charges if reported promptly¹⁸.

How to Protect Yourself from Tap to Pay Scams

While these precautions are sensible, remember that contactless fraud represents less than 3% of total fraud globally¹⁹. Even though banks work hard to keep you safe, there are ways that you can take extra precautions to limit your risk:

1. Use a digital wallet instead of a physical card to complete transactions: Apple Pay, Google Pay and Samsung Pay are the most widely known digital wallets. They use tokenised transactions, meaning that your actual card details are never shared - making it even safer than tapping your physical card^5-6.
2. Monitor your bank statements and enable alerts: Set up SMS or app notifications for every transaction - enabling you to catch unauthorised charges and transactions immediately.
3. Be Mindful of Where you Tap: If something seems suspicious, use an alternative payment method or check for tampering on the payment terminal. If you do not feel comfortable, do not tap your card and rather cancel the transaction.
4. Take Extra Protection: If you are particularly concerned, use RFID-blocking wallets or sleeves (although the actual risk is low)¹⁹.

So the Question is: Is Tap to Pay Safe?

Absolutely. Tap to Pay is one of the safest payment methods worldwide. While fraudsters may try to exploit it, their success rate is low compared to traditional scams like phishing and ATM skimming.

By understanding how tap to pay works and taking simple precautions, you can continue to enjoy fast, secure and hassle-free transactions no matter where you are in the world.

Tap smart, stay alert and don't let the myths stop you from using one of the safest payment technologies available.

References: 

1. EMVCo. Contactless
2. EMVCo. EMV Payment Tokenisation: What, Why and How. September 2024.
3. Al-Maliki,O., & Al-Assam, H. (2022). A tokenisation technique for improving the security of EMV contactless cards. Information Security Journal: A GlobalPerspective, 31(5).
4. Akinyokun,O., & Teague, V. (2024). SoK: Security of EMV Contactless Payment Systems. ResearchGate.
5. Apple. (n.d.). Apple Pay Security and Privacy Overview.
6. Google. (n.d.). Google Pay Security Overview.
7. PCI Security Standards Council. Official Site.
8. MDPI Sensors. (2024). Near-Field Communication (NFC) Cyber Threats and Mitigation Solutions in Payment Transactions: A Review. November 2024.
9. Consumer Financial Protection Bureau. (2024). Big Tech's Role in Contactless Payments: Analysis of Mobile Device Operating Systems and Tap-to-Pay Practices. December 2024.
10. Recorded Future. (2024). 2024 Payment Fraud Report: Trends, Insights, and Predictions for 2025.
11. The Payments Association. (2025). The state of fraud in 2024: Key mid-year takeaways.
12. American Military University. (2024). The Risks of Contactless Payment Are High Despite Security. November 2024.
13. CreatePay. (2024). UK Payments Industry Statistics 2024.
14. CSI. (2021). Contactless Payments: The Future of Digital Payment Technologies.
15. Visa. How Tap to Pay Works.
16. Mastercard. Zero Liability Protection.
17. CoinLaw. (2024). Digital Payment Fraud Statistics 2025: Essential Data and Prevention Measures.
18. European Banking Authority (EBA). Guidelines on Security Measures under PSD2.
19. UKFinance. (2023). Fraud Facts 2023 Report.