Banks have admitted that thieves are able to use contactless cards even if they’ve been cancelled – sometimes months after being reported stolen.
RBS, Lloyds, HSBC, Barclays and Nationwide admitted that a ‘weakness in the system’ can allow fraudsters to use cards after they have been reported lost.
The ‘tap and pay’ cards allow purchases up to £30 without requiring a PIN number.
The problem stems from the fact that some shops complete purchases ‘offline’, without checking with the card issuer if a card is valid.
Instead of checking ‘live’, some shops store transactions and check batches at the end of the day, meaning that stolen cards can sometimes be used.
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Speaking to the Sun Online, five major British banks admitted that their cards could be abused in this way.
Last year, the Financial Conduct Authority (FCA) vowed to clamp down on the problem.
The FCA says that if customers fall victim to this kind of fraud, they are entitled to get their money back.