Beware of 'phantom payment' and 'ghost tapping' scams

Digital wallets, credit cards and debit cards get plenty of use during high‑traffic shopping times—whether that’s major sales, payday weekends or simply everyday errands. As you keep track of your purchases, it’s important to stay alert for evolving scams that exploit these moments of increased activity.

To avoid these threats, customers need to be aware that they need to protect their cards, especially in crowds. "Always be vigilant, not only for credit card fraud, but also for your own security in general," cautioned Scott Edwards, director of fraud risk management at BOK Financial®.

Two of the most recent card schemes include:

• Ghost tapping: This is when criminals use Near Field Communication (NFC) devices to make unauthorized purchases by getting close to victims' tap-to-pay cards or mobile wallets.
• Phantom payments / fictitious payments: These are fraudulent transactions that appear without the customer's knowledge, usually for nominal amounts that may go unnoticed on the statement by the cardholder.

Edwards suggests using a wallet that blocks Radio Frequency Identification (RFID). This technology uses radio waves to identify and track tags attached to cards, enabling wireless data reading from a distance without physical contact. This will protect your credit and debit cards if someone stands close to you and tries to "ghost tap" a charge.

If you primarily use your digital wallet , Edwards says it's a good alternative to carrying your cards around, but get familiar with its security settings, particularly the NFC technology used to make secure transactions, exchange digital content and connect electronic devices.

"If you're not using your wallet, you can shut that NFC off so other devices aren't picking it up. Also, close out of your digital wallet when you're not using it," he said. Setting up biometric authentication to unlock your phone or smartwatch also ensures that only you can access your digital wallet. And it might be common sense, but also never leave those items unattended in a public area.

Account monitoring and alerts

Monitoring your accounts and setting alerts are other ways of catching fraud. Edwards suggests not waiting until your credit card bill comes in to review your charges, but instead, set up an online or app account and review spending weekly. You're more likely to remember where you shopped and what you spent the last few days rather than trying to remember the past few weeks, especially when a lot of shopping is done in a concentrated period, such as during the holiday season.

"It's so easy to just do a quick check of your account on your phone while you're waiting in line or for your kids and make sure that everything looks good. Then, report things that you don't feel are accurate to your financial institution so we can investigate further for you and take care of those claims when there is fraud," he said.

Shopping and website fraud

While shopping, you may be looking for deals, so fraudsters may set up fake websites offering goods at deep discounts. You make the purchase, enter your credit card information and never receive the goods. Edwards says to be extra cautious when buying from a site or store you're not familiar with.

"It's a good idea to run the name through a Google search to see if there have been any fraud reports before making a purchase. Even when buying from a big brand, make sure you use the correct URL. One typo could land you on a fraudster's spoof of that store's site. They count on people making mistakes typing in the store's website address."

If you're a returning or frequent customer, it's convenient to set up an online account on a store's site and have your credit card information saved for future purchases. However, fraudsters know that hacking a store's e-commerce site can be a goldmine for credit card numbers. "The fewer places you store your credit card numbers, the less likely you'll fall victim to a store's security breach. It may take a few seconds to type it in each time you make a purchase, but it could save you a lot of time and distress down the road," said Edwards.

When shopping in stores in person, pay attention to the prices on the shelves, watch when your item is rung up at the cash register and review your receipts before you leave to make sure the price matches what was advertised.

Email and voice fraud

Outside of shopping, Edwards also mentioned other ongoing scams to be aware of:

• Email spam flooding: If you're suddenly getting a lot of spam emails, a fraudster may be flooding your inbox, so you miss important alert emails from your bank or credit card company about fraud. Be sure your spam filters and passwords are strong.
• Romance schemes: If you suddenly get an email or social media message from a stranger looking to start a romantic relationship, be aware that these are often fraudsters looking to charm you to earn your trust before victimizing you.
• Spoof emails: Always check the email address of emails you receive from companies before clicking on anything. Fraudsters often use artificial intelligence to create realistic emails that appear to come from familiar brands, often filled with links to computer viruses or fake goods for sale.
• Deepfake voice scams: Fraudsters can replicate a family member's voice to call loved ones, claiming an emergency need for money. Always call or text the loved one directly to make sure it's really them.
• Bank impersonation scams: Criminals spoof phone numbers and pose as banks to steal one-time passcodes and access accounts.

Overall, Edwards says just being aware of the scams that could come your way is half the battle. The other half is using the protections that are available to keep them at bay. "There are a lot of controls that exist that consumers can take advantage of. Now is a good time to make them a habit."