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Contactless card warning: Britons urged to stay alert to fraud as limit increases to £100

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Contactless payments can create a sense of ease when a person is covering the cost of various day-to-day expenses such as shopping, eating out, or travel. As more and more people turn to this method of payment, it has been announced the payment limit has been increased. Britons will now be able to make contactless payments of up to £100, a move likely to make a payment experience far easier than entering a PIN.

However, while this measure has many benefits, people should also be aware of the potential risks of fraud which they will need to protect themselves from.

Nick Fryer, Chief Technology Officer of Dojo, commented on the latest update ahead of the Budget.

He said: “Contactless cards have now been with us for a while. When first introduced in 2007, they had a limit of £10, to £15 in 2010, £20 in 2012 and £30 in 2015.

“But today’s Budget shows the biggest increase since the widespread introduction of the tech, with spending on contactless cards now capped at £100. 

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But while the contactless card limit change could be considered as a victory, there are clearly key matters to consider.

One such issue is the potential for fraud, and keeping Britons safe should they lose or misplace their card, or, in more extreme circumstances, find themselves robbed.

Mr Fryer added: “The Financial Conduct Authority’s consultation showed that 41 percent of all card transactions showed were contactless, despite the limit being below that of your average supermarket spend. 

“This clearly demonstrates how popular contactless cards are already compared to your standard chip and PIN.

“The only issue is protection. With Sunak raising the contact limit to the, not insignificant sum of £100, what steps is he going to put in place to make sure that our cards are protected from fraud?”

Thankfully, though, there are certain ways Britons can protect themselves from falling victim to fraud, outlined by Dojo in further detail.

The first tip is to check a bank statement regularly, a task which Britons often forget.

Keeping a regular track of outgoings both in terms of a price paid and where the money is going is key.

This will enable people to easily spot transactions on their account which appear odd, and take action straight away to clarify the situation.

Next, a recommendation is to use a protective cardholder, a special form of technology which can protect Britons from fraud.

A protective cardholder can block out radio signals which are often deployed by fraudsters to harvest and activate contactless details upon walking past an individual.

Unfortunately, with contactless payments, people are at risk of fraudsters who are in their close proximity targeting them to steal details.

This is a more tech-savvy and sophisticated form of fraud as a physical card does not need to be stolen for details to be at risk.

Known as radio-frequency identification or RFID, Britons will be able to procure a protective card holder from numerous websites and retailers.

Finally, another tip which could help protect Britons against fraud is splitting money across several accounts.

This could mean if one account is targeted by cybercriminals, individuals do not stand to lose everything as a result.

The organisation advised placing bills into one account, with shopping and socialising into another. 

Do you have a money dilemma which you’d like a financial expert’s opinion on? If you would like to ask one of our finance experts a question, please email your query to [email protected]



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