Contactless, RFID, NFC, what's it to you?

Contactless cards, RFID blocking, NFC enabled; what does the jargon mean and how does it affect your everyday life?

 

• Contactless cards, “contactless” has become the generic term in the banking industry for the type of payment system where you simply wave your credit or debit card close to a payment terminal which uses radio waves to link with your bank card to collect payment. The bank card has a microchip embedded that is activated by the radio waves and allows interrogation of the data contained in the chip. Designed to be speedy you do not need to enter a PIN number or signature. The maximum amount you can spend in one transaction varies around the world, for example Australia’s limit is $100 where the UK currently allows £20. Expect these limits to increase as the system becomes more widespread. You can identify a contactless credit card by the “Wi-Fi” symbol on the front of the card.

 

RFID blocking, RFID or Radio Frequency Identification is the two way communication between for example the payment terminal and the contactless card. There are two main frequencies for RFID. Bank cards and passports operate on the 13.56Mhz frequency. The terminal “identifies” the card the card carries identification data. RFID blocking is as it sounds blocking or preventing the radio signal from interacting with the contactless chip embedded in the bank card.

 

• NFC enabled; NFC is near field communication, allowing exchange of data between two or more devices in close proximity. Modern android phones are good examples of a device you may own that has NFC functionability in other words NFC enabled.

What can you do with your contactless card? Well the rapid payment technology means you can pay at the checkout in around 5 seconds, Whizz through the M6 toll just by waving your card close to the toll machine, travel on London buses and very soon the London underground along with many other regional transport systems without the need to fumble around for the right money. Simply wave and pay.

 

So we have bank cards and passports in growing numbers (over 30Million bank cards in UK alone) and a world full of devices that can communicate with the data chip contained. Just take a look in the App store and find apps that will read your bank details and your biometric or e-passport data. If you have an NFC enabled phone why not try it yourself.

 

The UK has seen many press articles, radio even TV reports regarding accidental scanning in stores and on transport systems so a problem has already been identified. Your card may be debited while still in your purse or wallet even though you wanted to use cash or a different bank card. here's an example London buses charge wrong card

 

We are constantly hearing reports about bank security being attacked at all levels including high level cybercrime. Think about the technical implications of having your data accessible to eavesdropping by radio scanners. Even someone stood alongside you with a mobile phone or laptop bag may be NFC enabled. We expect that attempts will be made to crack the security of this system as criminal gangs use more and more advanced and audacious methods to steal money and data. Sign up for alerts here ALERTS 

A £20 theft from a bank card may not trouble most people for a long time but the theft of a person’s identity is a far more serious issue, in some cases it takes years to resolve. A recent study showed for example that 1 in 14 Americans were victims of credit card identity fraud. 

Sign up to our e-mail alerts and we will keep you updated with the latest frauds and scams doing the rounds, and with developments in how to keep your identity and valuables safe. It’s free and you can expect an update around once per month with emergency alerts if we see a particularly dangerous fraud threat. 

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Take a look at these shields to protect your contactless cards.