A Michigan woman thought she donated $50 — but a tap-to-pay scam charged her $1,000. Here’s how to avoid ‘ghost tapping’

Later the woman discovered that the transaction was actually for $1,000, not $50, so she filed a report with the police. At the time, she hadn’t even thought to double check the dollar amount she was being charged.

This new scam is known as ‘ghost tapping,’ and Guidepoint Security reports that fraud claims related to ghost tapping have gone up 150% since last year.

What is ghost tapping?

Ghost tapping scams use the same near-field communication (NFC) technology that powers tap-to-pay systems. These scams can take the form of the young woman’s situation previously mentioned, where scammers charge a higher amount of money than agreed to and have you tap to pay. In those instances, the total amount typically won’t appear on the screen so you don’t know that they’re charging you more. Scammers may also be using illegitimate payment devices that mimic those you’d expect to see at a proper retailer.

The scam can also happen in a more ghostly way, where you don’t even come in direct contact with the scammer. This can happen when a scammer gets close enough to your phone or tap-enabled card to initiate a payment. They could do this by “accidentally” bumping into you, or simply being near you. Often, these situations occur at crowded events like festivals and markets.

Combating these scams

This brand of scam is often discreet and can be tricky to spot. But, there are ways to combat them and protect yourself — and your digital wallet — from harm.

“Just like we prepare ourselves with personal safety when we’re out in public, people need to prepare themselves for financial safety when we’re out in public” Amy Nofziger, senior director of victim support for the AARP Fraud Watch Network, told The Detroit Free Press.

Here are a few ways to keep yourself safe:

• Read before you pay: Confirm the price you are being charged by any merchant, and ask them to show you the amount they have put in their system before you tap.
• Turn on transaction alerts: This will let you know immediately if your card is being used by a scammer.
• Add security protections to your phone: Set up Face ID, fingerprint and passcode protection on your phone to take as much precaution as possible and prevent scammers from getting access to your information.
• Don’t ignore small, random charges: Even a small amount of money could be a scammer testing the waters. If something feels off or isn’t a purchase you made, look into it right away.
• Protect physical cards: Try not to keep credit cards loose in your pocket where someone can easily get close to it.
• Turn off tap-to-pay features when not in use: If you’re not actively using tap-to-pay, turning off the feature can limit people’s access to your mobile wallet.
• “Have a refusal script:” This is Nofziger’s advice for situations where people are asking for donations or anything along those lines. She advises you to say something like “I do not give money to unknown organizations or people I don’t know,” to shut the potential for a scam down immediately.