Can Tap to Pay Be Hacked and What You Need to Know

Tap to Pay technology is designed to be secure, but like any payment method, it's not completely risk-free. The use of Near Field Communication (NFC) and tokenization helps to protect sensitive information.

However, hackers have been known to exploit vulnerabilities in the system. In 2020, a study found that 75% of contactless payment terminals were vulnerable to hacking.

Security experts recommend using a secure lock screen and keeping your device's software up to date to minimize the risk of hacking.

Tap to Pay uses Near Field Communication (NFC) technology to transmit payment information between your phone and the payment terminal.

This technology relies on a secure element, such as a Trusted Execution Environment (TEE), to protect your card information.

The secure element is a dedicated chip that stores sensitive data, like your card number and expiration date, in a highly secure environment.

The payment terminal receives the encrypted payment information and sends it to the bank for verification.

Once verified, the bank sends a response to the payment terminal, which then completes the transaction.

The entire process happens in a matter of seconds, making it a convenient way to make payments.

Tap-to-pay technology is not as secure as you might think. Emerging cyber threats are constantly evolving, posing new challenges to the security of digital wallets.

One of the main security risks with digital wallets is the possibility of fraudulent payments. Researchers have discovered inherent issues with the technology that may allow transactions from stolen or canceled payment cards.

These vulnerabilities exist in the authentication, authorization, and access control security functions of digital wallet systems. This means that an attacker can integrate an unrelated, stolen, or even canceled payment card into their own account and make payments.

The attack scenario involves an attacker exploiting the authentication method agreement procedure between the wallet and the bank, bypassing payment authorization, and creating a trap door through different payment types. This can violate the access control policy for payments.

Researchers have effectively demonstrated their attack strategy against popular US banks, including Bank of America, Chase, and AMEX, and the common digital wallets Apple Pay, Google Pay, and PayPal.

Samsung Pay has a vulnerability that allows attackers to skim cards and make fraudulent payments, but only if they're physically close to the target while they're making a legitimate purchase.

The attacker must be able to jam the signal between the smartphone and the payment terminal, skim the token from the phone, and use that token before the user completes their intended purchase. Samsung describes this process as "extremely difficult", but it's possible.

Relay attacks are another type of hack that can target tap-to-pay systems. These attacks involve two attackers: one near the payment terminal and another near the victim's device. The attackers can intercept and relay the communication between the device and the terminal over a longer distance.

Here are some ways hackers can compromise tap-to-pay systems:

Using public Wi-Fi networks for tap-and-pay transactions exposes users to additional risks, including man-in-the-middle attacks and data interception.

Conducting tap-and-pay transactions over public Wi-Fi networks can expose you to several risks. This is because public Wi-Fi networks often lack encryption, making it easier for attackers to eavesdrop on data transmissions.

Man-in-the-Middle Attacks are a significant concern. Attackers can intercept communications between your device and payment terminal over public Wi-Fi, potentially capturing sensitive information such as payment details or authentication credentials.

Using a Virtual Private Network (VPN) is a good way to encrypt data transmissions and enhance privacy. This can help mitigate the risk of data interception and Man-in-the-Middle Attacks.

Public Wi-Fi networks are not the only vulnerable environment for tap-and-pay transactions. Even in a shop, an attacker could potentially skim a user's payment token and make a fraudulent purchase with their card, as Samsung has admitted.

To put this into perspective, if an attacker analyzes the tokens very carefully, they could implement a guessing method to generate their own new, usable tokens. However, this is considered an "extremely difficult" process.

Here are some tips to help you stay safe:

Malware and phishing pose significant threats to tap and pay technology systems. Malicious software can infect smartphones or other NFC-enabled devices, compromising contactless card security.

Malware can intercept transaction details or manipulate payment processes to divert funds to unauthorized accounts. Phishing attacks trick users into revealing sensitive information, such as login credentials or payment details.

Quick Heal Total Security offers robust protection against malware and phishing attacks targeting tap and pay systems. It includes real-time threat protection, which detects and removes malware, including those that specifically target NFC-enabled devices.

Here are some key features that help prevent malware and phishing attacks:

Phishing attacks can be prevented by being cautious of deceptive emails, messages, or websites. Attackers may impersonate legitimate payment apps or services, leading users to unwittingly disclose their financial information.