Experts: "Contactless" Credit Cards Pose Security Risks
RFID—CANADAJune 3, 2010
Most new credit cards in Canada are equipped with embedded radio frequency identification (RFID) chips, which experts caution poses major fraud and privacy concerns, CBC News reports. "Contactless" credit cards need only be waved near a payment terminal in a store for the RFID chip to supply the number and expiration date, the report states, which means that anyone who purchases an RFID reader online could potentially begin accessing accounts without the cardholders' knowledge. In addition to fraud risks for these unencrypted credit cards, experts also warn of other privacy violations, such as employers using card-access doorways to scan employees' RFID credit cards for information on their finances and lifestyles.