Rising Contactless Payment Thefts: Protect Yourself from Portable POS Scams – Tips to Secure Your Wallet and Smartphone

The resurgence of portable point-of-sale (POS) thefts is a concerning trend in light of the widespread adoption of contactless payment systems. These stealthy crimes, difficult to detect due to their swift execution, have seen a surge in popularity. But how prevalent is this risk, and what measures can be taken to safeguard against POS scams?

A recent incident in Sorrento, Italy, shed light on the issue when authorities apprehended an individual attempting to steal €100 from a bar’s cash register. During the search, law enforcement allegedly discovered a modified portable POS terminal, resembling a SumUp Solo device, a popular independent, portable POS system often used in street vendors and market stalls.

This is not an isolated incident; similar arrests have been reported before, such as a case at a highway rest stop detailed by news agency Ansa last year.

POS thefts can occur through two methods. The first method involves robbers stealing a wallet and making small, card-less transactions at a later time to mimic short-term purchases. Once the limit is reached, the wallet is discarded.

The second technique involves creating a payment request on a portable POS device, which is then surreptitiously placed in public areas such as crowded transport or commercial establishments. The success rate of this method is low due to various factors, including the 30-second confirmation period for transactions and the need for near-contact between the POS and the card, typically within 0.5 to 4 cm.

To minimize your risk, it’s advisable to keep your wallet in a secure location, potentially utilizing RFID-protected wallets that provide a barrier against these types of scams.

For added protection, you can opt for bank app settings that allow notifications for even minor contactless transactions. Criminals typically employ small amounts, counting on victims being unaware of the withdrawals due to confusion with other small transactions. If you fall victim to such a scam, it’s crucial to immediately contact your bank to dispute the charges as transactions can be traced and the device used by fraudsters identified, even if they have switched to a new one.

Finally, most modern smartphones are now equipped with an NFC chip for contactless payments. POS thefts using portable terminals can often be prevented as the smartphone must be unlocked, thus preventing any transactions when a POS terminal is placed on an unattended phone.