About NFC Fraud and “Ghost Tapping”

We’re all familiar with traditional pickpocketing. A skilled thief bumps into you on a crowded train or sidewalk, and your wallet quietly disappears. Today, that same concept has gone digital.

As physical wallets are replaced with contactless cards and mobile wallets, many people assume they are automatically safer. The reality is more nuanced. While digital wallets use advanced security, criminals have adapted too, giving rise to a newer form of digital pickpocketing known as NFC fraud, including a tactic often referred to as ghost tapping.

What Is NFC and How Does It Work?

Near Field Communication (NFC) is the technology behind tap-to-pay transactions. It allows two devices, such as a credit card and a payment terminal or a phone and a reader, to exchange data when they are very close together.

This short range is designed to be secure, but it also means that proximity matters. In busy environments where people are distracted, that proximity can sometimes be exploited.

What Is Ghost Tapping?

Ghost tapping is a type of NFC fraud where a scammer attempts to trigger an unauthorized contactless payment without the victim realizing it. This can happen when someone gets close enough to your card or phone in a crowded area or manipulates a tap-to-pay interaction.

According to consumer protection organizations like the Better Business Bureau, these scams may involve unauthorized taps, fake vendors, or misleading payment prompts that result in charges the victim never intended to approve.

How Does It Happen in Real Life?

Ghost tapping does not usually look dramatic. Common scenarios include:

• Someone brushing past you in a crowd with a concealed NFC reader
• A scammer posing as a vendor or charity collector and rushing you to tap
• A small “test” charge that goes unnoticed before larger charges appear later

Because contactless payments are fast and often don’t require receipts, fraudulent charges may not be discovered until a statement or alert is reviewed.

Are Digital Wallets Safer Than Physical Cards?

The Short Answer: Yes, but They’re Not Foolproof

Digital wallets like Apple Pay® and Google Wallet™ use tokenization, meaning your actual card number is never shared during a transaction. Instead, a one-time encrypted token is used, which significantly reduces the risk of data theft compared to older magnetic-strip cards.

However, convenience can create opportunity. Fraudsters are less focused on breaking encryption and more focused on exploiting distraction, crowd density, and human habits.

How Can You Protect Yourself From NFC Fraud?

Consumer advocates like the Better Business Bureau recommend several simple habits that significantly reduce risk:

• Use RFID-blocking wallets or sleeves for contactless cards
• Enable real-time transaction alerts through the PWSB Mobile banking app or within online banking
• Always confirm the merchant name and amount before tapping
• Avoid tap-to-pay in crowded or unfamiliar settings
• Review account activity frequently for small or unfamiliar charges

The BBB provides additional guidance and examples in its consumer alert on ghost tapping scams. For more info, you can visit their website:

https://www.bbb.org/article/scams/32343-bbb-scam-alert-what-is-ghost-tapping-how-to-spot-and-avoid-tap-to-pay-scams

The Bottom Line

Contactless payments are secure, fast, and convenient, but they are not immune to fraud. NFC scams like ghost tapping are modern versions of an old problem: exploiting proximity and distraction.

Digital wallets reduce many traditional risks, but staying informed and alert is still the most powerful layer of protection. Awareness, combined with smart security habits, helps ensure that convenience doesn’t come at the cost of control.

Apple Pay is a trademark of Apple, Inc., registered in the U.S. and other countries. 

Google Pay is a registered trademark of Google LLC.