Can Contactless Cards Be Skimmed?

Contactless payment cards offer convenience by allowing users to tap their card or device at a payment terminal. This technology raises questions about security, particularly regarding the potential for “skimming,” where card information might be stolen without the cardholder’s knowledge. Understanding how these cards function and the safeguards in place can help address these concerns.

How Contactless Technology Operates

Contactless cards utilize Near Field Communication (NFC) or Radio-Frequency Identification (RFID) technology for transactions over short distances. When a contactless card is brought near a compatible payment terminal, typically within a few centimeters, the terminal emits electromagnetic waves. These waves power the chip and antenna within the card, enabling a secure, wireless exchange of data. This process allows payments without the need to insert or swipe the card.

Understanding Contactless Card Skimming

“Skimming” traditionally refers to the illicit copying of static card data, such as the full card number and expiration date, from a magnetic stripe. This data can then be used to create counterfeit cards or make unauthorized purchases. While reading some data from a contactless card at a very close range is theoretically possible, it differs significantly from traditional skimming. Contactless cards are resistant to these techniques because the data transmitted is dynamic, not static. The range for effective communication is extremely limited, usually no more than 4-10 centimeters. Intercepting useful, reusable transaction data from a contactless card is challenging due to these limitations and integrated security features.

Built-in Security Features

Modern contactless cards incorporate security features that make them resistant to fraudulent use. EMV chip technology generates a unique, dynamic cryptogram for each transaction. This one-time code makes it exceptionally difficult for fraudsters to intercept and reuse card information, as the stolen cryptogram expires after a single use.

Tokenization provides another layer of security by replacing the actual card number with a unique, randomized token during the transaction. This token, meaningless outside the specific payment system, ensures sensitive card details are never directly transmitted or stored by the merchant. Data transmitted during contactless payments is also secured through industry-standard encryption, creating a secure channel for communication. These measures prevent the transmission of static card data, making effective skimming for cloning or unauthorized purchases highly improbable.

Steps for Protecting Your Cards

To enhance the security of your contactless cards, several proactive measures can be taken. RFID-blocking wallets or sleeves can physically prevent unauthorized reading by disrupting the radio waves used by scanners. These products often use materials like metal or specialized fabrics to create a shield. While the risk of remote skimming is low, these tools can offer reassurance.

Monitoring bank and credit card statements for any suspicious activity is an important step. Many financial institutions offer online banking or mobile app platforms to easily review transactions. If unauthorized activity is detected, immediately contact the card issuer using the customer service number on the back of the card or the bank’s official website. Additionally, reporting the fraud to relevant authorities, such as the Federal Trade Commission (FTC) via IdentityTheft.gov, and placing a fraud alert with the three major credit bureaus (Equifax, Experian, and TransUnion) can help mitigate potential damage.