Smartphones Now Capable of Stealing Credit Card Data

June 3, 2013, Written By Bill Hardekopf

If you were worried about your credit card information before, you might be weary to know about new smartphone apps that can steal your data with a simple swipe. In a matter of seconds, someone can come up to you and steal credit card information without ever having to touch your credit card. At least, that is what CBC News discovered in their latest investigation.

All they did was download a free app from Google Play onto a Samsung Galaxy SIII. Then, they scanned the phone over a card in someone’s pocket, and they were able to capture all the information they needed to make a purchase. The investigators bought a soda, but they could have easily purchased something much more expensive–all on someone else’s tab.

Some app developers and credit card companies argued that this process will take at least 30 seconds to complete. CBC’s investigators were able to gather all the data they needed in less than five seconds. The credit card companies also suggest that they have multiple security layers to prevent such fraud from occurring. Nevertheless, their layers were unable to stop these investigators from using someone else’s card to pay for that soda.

Investigator Michael Legary says “They don’t even need to talk to you or touch you, they can get information about who you are. That may make you more of a target for certain types of crime.”

This is yet another form of credit card skimming, which is becoming a more popular form of fraud by the day. To protect yourself from such crimes, keep an eye on your credit card accounts and report suspicious activity right away. The credit card company should correct the matter free of charge.



The information contained within this article was accurate as of June 3, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
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