3/25/2012

Barclays bank could be fined for contactless card frauds

UK : An investigation found users of the bank’s “contactless” debit or credit cards, designed to make payment when held next to special “readers”, could have their details stolen without their knowledge.

But Channel 4 News found that special “readers” built into new mobile phones can take data from the cards in wallets and pockets in just one swipe.

Using data taken from a card, researchers commissioned by the programme were able to buy “multiple goods online” through Amazon.com.


The programme said it was only able to "access the details of Barclay issued Visa cards" as other banks and systems weren't accessible.


Thomas Cannon, of ViaForensics, a mobile phone security company which undertook the research, said: "All I did was I tapped my phone over your wallet.

On Friday night the Information Commissioner, Christopher Graham, raised the prospect of potential fines for Barclays, which he said had “big questions” to answer. Officials from his office are due to meet with Barclays executives on Monday.


A Barclays spokesman admitted the bank was “understandably concerned about these transactions”.

Amazon was unavailable for comment. Amazon is just one of several websites that does not require any additional information in order to turn basic credit and debit card details into purchases.

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