Visa, a leading company in the digital payment sector, has released a report warning consumers about a new method called “digital pickpocketing” ahead of the Money20/20 conference taking place in Las Vegas from October 27 to 30. On October 25, Visa unveiled its Fall 2024 Fraud Report, highlighting various fraud techniques targeting banks and consumers. The report noted that while some traditional methods continue to persist, the emergence of “digital pickpocketing” is particularly concerning.
In the report titled “Fraud Landscape: Fall 2024 Semi-Annual Threat Report,” Visa stated that physical theft has made a resurgence over the past six months, with an increasing trend. Criminals are using stolen payment information, credit card numbers, and other data to purchase gift cards or physical products for resale. Some even engage in online transfers using this stolen information.
Additionally, Visa revealed that a new method known as “digital pickpocketing” has been detected since March 2023, and it is expanding rapidly. This technique primarily involves the use of mobile point of sale (mPOS) systems, which are designed to execute cash register and electronic sales functions through smartphones, tablets, or wireless devices.
Criminals often operate in crowded locations, employing these mPOS devices to skim credit card information directly from consumers’ wallets and initiate payment processes.
Michael Jabbara, Visa’s Senior Vice President and Global Head of Fraud Services, emphasized that while traditional pickpockets steal physical possessions, digital pickpockets steal financial information. He advised consumers to remain vigilant about their surroundings to protect themselves from digital pickpockets, just as they would from their traditional counterparts. Jabbara pointed out that criminals typically target individuals who are distracted by other activities.
He recommended consumers set up real-time transaction alerts for their accounts. If they notice any purchases they did not make, they should promptly notify their bank. This not only safeguards their own finances but can also help protect other potential victims.
Visa’s report also highlighted that criminals often exploit the busy travel season by targeting consumers planning trips. One common scam involves fraudulent websites that mimic major airlines, luring consumers with low-priced offers to steal their personal information and money.
Jabbara urged consumers to take immediate action if they detect any suspicious activity. They should contact relevant financial institutions, update their passwords, and ensure that two-factor authentication is correctly set up. If confirmed theft occurs, it is essential to report the incident to local law enforcement right away.
