Jan 22, 2025
Drew and Leilani planned a quick trip to Target in Chicago’s Near North Side. They didn’t bargain on losing $4,500 in a scam or on Drew sustaining serious injuries when things got violent.
Drew told CBS News Chicago that it all started when they walked in the store and two men they thought were panhandlers approached them asking for donations to help bury their brother.
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“We were feeling in a giving mood that day," he said.
The couple agreed to donate $20, but the men wouldn't accept cash. Drew and Leilani were a bit skeptical—with good reason, as it turned out.
Tap-to-pay scam turns violent
Leilani then tried using her credit card to donate, but her bank blocked the transaction. Drew already had his smartphone out, so he offered to use Apple Pay, which the men said would work.
But when Drew looked at his phone after tapping, he saw they had taken $4,500, not $20.
"I said to myself, 'Oh, hell no,' and turned and started chasing them."
Drew pursued the men into the parking garage and tried unsuccessfully to hold one of them until police could be called. As the two men got in their car and started to drive away, Drew managed to jump inside the car with them..
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"They were swerving into the left lane of parked cars in the Target parking lot, and that ended up throwing me from the car,” Drew said.
He skidded until he hit the back of a truck, sustaining injuries that sent him to ER, including a fractured rib and punctured lung,
CBS News Chicago reports that the couple are doing OK now, although they face a hefty hospital bill. But they could have avoided both the physical and financial costs with some knowledge about tap-to-pay scams.
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How tap-to-pay scams work
Tap-to-pay scams exploit an often-overlooked feature of contactless payment on smartphones.
Apple Pay and other contactless payment apps allow users to make payments by tapping their phone against a payment terminal or another smartphone. The terminal that pulls the funds sets the price, tells your phone how much you spent and processes the payment.
If the terminal is a scammers’ phone, they can set any price they want. The men at Target tricked Drew and Leilani by entering a much higher amount than the $20 the couple offered, and Drew didn’t realize it until it was too late.
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There are other tap-to-pay scams to beware of. A stranger at a bar might ask to use your phone to make a call or give you their phone number. Once they have your phone, they swipe to instant payment apps like Apple Pay to send themselves cash.
To protect yourself, be cautious when someone asks for money, particularly in public places. If they won't accept cash, walk away. Never hand your phone over to someone you don't know.
Ensure all payment apps have adequate security settings, such as requiring authentication for each transaction or requiring a face scan to open. Also, monitor your payment history for suspicious activity.
If you do find yourself the victim of a contactless payment scam, the Federal Trade Commission recommends that you report it to their consumer fraud site to help the FTC and other agencies stop scams.
Finally, never chase after scammers or get into a physical altercation. Instead, contact your bank right away and dispute the charges. Drew was able to dispute the fraudulent charge, and his money was returned.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
