Can Chip-Based Debit Cards With NFC Support Be Hacked?

Debit cards enabled with the NFC feature are secure, but make sure you put them in a wallet that prevents sniffing.

Photo for representational purposes.

(Photo: iStock)

The Indian government has asked banks in the country to gradually offer debit or credit cards with near field communication or NFC technology.

This means that most of you will be able to use contactless cards at a store and pay by waving it over the point of sales (POS) terminal. These cards work exactly like the regular RFID card, which is used to record attendance, as well as grant access to a door in many offices. The technology claims to be secure and effective, but experts have sounded a word of caution.

No, it doesn’t mean you need to worry about these cards in circulation. However, there is some danger posed by hackers and if not taken care of, could result in people losing money from their bank accounts. How can one prevent such mishaps?

Frequently, you would have come across videos that show thieves stealing data from another person’s card, while it is still in his/her pocket, using card skimming devices. And experts agree that such incidents can happen with contactless cards.

Apparently, there are rogue card-reading devices that can to record your card details like the CVV number and expiry date.

If you and me are shaking hands, and your wallet is in your pocket with an NFC card and in my pocket there is a battery operated reader, your card emits and my reader sniffs. I can clone your card or use card authentication data I recorded, to transact fraudulently.

Prashant Verma, AVP - IR & Breach Forensics, Paladion Networks 

Add UPI payment option for direct transfer on Android phones. (Photo: The Quint)

Incidents like these have been rarely observed in India, especially when the number of contactless cards available in the country is still below 10 percent. Currently, no concrete data is available on the number of contactless card users in India, which highlights its nascency.

But we’ve already seen Visa and MasterCard offering such cards in the country and various stores already supporting NFC-enabled payments, with many more to be added in the coming months.

So, how can you protect yourself from such mishaps? NFC-protected wallets, as prescribed by Verma are a cost-effective way of keeping your cards safe. For banks and issuers like Visa, he believes that NFC technology specific configurations need to be applied while designing contactless cards in the future.

Secure the card data by adapting adequate protection of authentication and encryption data. Remember PCI DSS standards and apply them in the context of NFC and RFID.

Prashant Verma, AVP - IR & Breach Forensics, Paladion Networks