Amazon OKs 'contactless' credit cards prone to Android fraud | Economy | -- Your State. Your News.

Jun 02nd
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Amazon OKs 'contactless' credit cards prone to Android fraud

creditcards032812_optBY BOB HOLT

With Near Field Communications contactless credit cards, users can make a payment by swiping their card at a reader without entering a PIN number. It's been learned that card readers being built into mobile phones can be adapted to access such card information.

Channel 4 News in the United Kingdom conducted experiments with viaForensics, a mobile phone security company, that showed Barclay’s contactless Visa cards can be read by newer Google Android phones to gain details that can be used to make fraudulent purchases on Amazon.

Thomas Cannon of viaForensics told Channel 4, "All I did was I tap my phone over your wallet and using the wireless reader on the phone I was able to lift out the details from your card, that includes the long card number, the expiration date and your name. None of it was encrypted."

For more in finance, visit New Jersey Newsroom's Credit Center.

Online retailers normally confirm the identity of the credit card holder by asking for the three or four digit security code on the back of the card. According to Business Insider, Amazon doesn’t always ask for that code.

According to Channel 4, reporter Benjamin Cohen said, “We were surprised that Amazon processed our transactions using a Barclays Visa that didn’t belong to the person making the order. But the transactions went through without a hitch for physical product orders and also electronic orders that were downloaded immediately.”

ViaForensics reports that the phone cannot have its data read while it is in a person’s pocket because the NFC hardware is disabled when the screen is off.

Cohen suggests that Amazon might be skipping the verification of the security code numbers because online shopping services are not allowed to store them in their shopping cart systems. He recommends wrapping your contactless card in tin foil to enhance security.

The Department of Business, Innovation and Skills is urging credit card issuers to cancel and recall the cards if necessary. Barclays has about 13 million contactless cards in circulation.


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