How contactless payment rules have changed in Brazil and why fraudsters are targeting cards without the need to enter a PIN

Contactless payments are now used in many countries around the world. However, there are still many people who do not trust credit cards in this respect. And I understand that. My grandmother and grandfather were raised on cash. And credit cards are still something that scares them and makes them feel insecure in modern times. Mostly because of the possibility that someone could steal the card. But in Brazil, fraudsters have recently figured out other ways to get money off a person’s card.

If you pay by contactless, you simply put your card, mobile phone or watch to the terminal and the amount is deducted. There is no need to enter a PIN up to a certain amount. It’s practical, fast, shortens lines at stores and reduces the number of angry cashiers. Personally, I often pay by card as well, because there is no more angry person than the clerk who has to give you change out of a thousand when you buy gum.

“Contactless technology has sparked one of the biggest changes in consumer payment habits, perhaps in decades,” says Mastercard communications director Vicki Hyman, literally. But card payments have their drawbacks, too.

Thieves can do a lot of damage

Of course, if someone steals your contactless payment card, they can’t spend everything you have on it. But they can make a few low-value payments that don’t require a PIN. By the time the person realises the card is missing and has it blocked, the money has often already been spent. That’s one of the things my grandparents are afraid of.

That’s why they don’t use the card. Yet cash can be pulled out of their wallet just as easily by a thief, and tracking it down is far worse than with a card, but I won’t explain that to them. My grandmother argues that she always has a small amount of money on her, but a person usually has all their savings on a card, so it’s dangerous. I’d rather not tell them about what the fraudsters in Brazil have come up with now, their dislike of modern payments would only increase.

They don’t need a card to steal

Contactless card payments are encrypted, each with its own unique code that prevents fraudsters from accessing your data through the terminal. It’s just that this isn’t always the case. People are resourceful, so you may be tricked by a merchant who uses special software to deduct more than you’d expect from your card when you pay. In Brazil, such cases happen frequently and the authorities there warn people not to pay by card in unverified places.

In addition, it is important to carry your card well hidden in your wallet or receipt. If you just have it in your pocket and someone holds your phone close to it, a payment you did not enter can be made through the cloth. This trick is used by the authorities in many countries, but it is often quite difficult to track down the thieves. However, if you only pay at verified shops and keep your card in your purse in a safe place, you shouldn ‘t have any problems.