Louisiana Debit Card Users Warned of ‘Ghost Tapping’ This Halloween

(KMDL-FM) In the world of personal finance and identity theft, it is always "spooky season," or it at least sure seems that way. As we sit on the cusp of Halloween this weekend, there is word of a new scam that is affecting Louisiana credit card and debit card users who utilize the popular "tap to pay" feature of their cards.

The very appropriate name for the new scam, considering the season and all, is called ghost tapping. The reason this is more frightening than catching the spirit of your dearly departed great grandma in her nightie standing in the kitchen is that you might not even know if you've been scammed until the money is disappearing from your account.

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To understand how to prevent "ghost tapping," you need to understand how and why ne'er-do-wells are able to make it work. Your "tappable" card has a small electronic device embedded called an EMV chip. It is a very small microprocessor that creates a one-time code for each transaction you make.

These devices work on something that is known in the industry as "Near Field Communication". In other words, you have to be really close to the device for it to interact. Hence, the physical "tapping" of the card on the pay screen when you check out.

The bad guys have figured out that there doesn't have to be physical contact between a "reader" and your card. They just have to be close. You know, like standing next to someone in a crowded bar or checkout line, or at a festival.

When it comes to scams, we rely on the Better Business Bureau for best practices in avoiding them. Here are some scenarios for you to be aware of in which "ghost tapping" could take place.

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When Is Ghost Tapping Most Likely to Happen?

1. People getting close to you in a public space so they can access your tap-enabled card or mobile wallet while you’re paying
2. Pretending to be a vendor at events like flea markets or festivals. These scammers sometimes set up fake stands and ask for tap payments
3. Charity scams using tap-for-pay ask for a small donation but charge the card for a larger amount
4. Rushing the process but moving you through the tap-to-pay procedure as quickly as possible so you don’t have to check the business name or transaction amount.

Those are the "environments" you want to avoid with your tap-to-pay credit or debit card. Here is what the Better Business Bureau says are signs to look for if you feel your card or EMV chip has been compromised.

What Are the Signs That You've Been Ghost Tapped?

1. You receive bank alerts on small or unusual “test” charges
2. You receive a digital request to scam without showing you the total or offering a receipt
3. Suspicious charges appear on your account after you’ve been in a crowded area like a festival, market, or transit station.

The BBB suggests that you can prevent "ghost tapping" by using an RFID protective wallet, which is quite common these days. You should always confirm payment details before you tap a merchant's screen. It's amazing how many of us don't even look at the final total before we tap.

You should also use the security service provided by your bank. Many of them offer transaction alerts so you know if someone is attempting to access your accounts. And speaking of your account, you need to monitor it daily. That way, if there are fraud charges, you will discover them sooner rather than later, while you still have money and still can do something about the fraud.

The other suggestion from the BBB is not to use your tap-to-pay cards in high-risk areas. Instead, use the swipe or insert function of your card. After all, it is your money, and if you don't look out for it, someone else will be happy to take it from you and raise it as their own. No, they'll just steal it.