UAE Banks Face Rising Threat as Fraudsters Target Tap-and-Pay

The growing popularity of contactless payments in the United Arab Emirates (UAE) has created a new battleground for financial institutions as cybercriminals exploit the convenience of tap-and-pay transactions to steal money. Customers across the country have reported unauthorized charges on their credit and debit cards linked to digital wallets like Samsung Pay, Apple Pay, and Google Pay.

One such victim, Abu Dhabi resident Nadeen Awwad, recently discovered three fraudulent transactions totaling over Dh10, 500 ($2, 859) made on her credit card within a span of just two to three minutes.

Experts warn that the ease and anonymity associated with contactless transactions make them particularly attractive to fraudsters. Unlike traditional chip-and-pin transactions, contactless payments often require no PIN verification for small purchases, creating a window of opportunity for criminals.

The UAE's status as a regional business hub with a high concentration of wealth makes it a prime target for cybercriminals. According to Kaspersky Lab’s Amin Yamout, “humans remain the weakest link” in these crimes. Social engineering tactics and phishing scams can trick users into divulging their personal information or clicking on malicious links that compromise their financial data.

Banks in the UAE are scrambling to strengthen their security measures in response to this evolving threat. Some institutions are implementing lower transaction limits on contactless payments and requiring PIN verification for purchases exceeding a certain amount.

Financial institutions are also urging customers to be vigilant and monitor their bank statements regularly for any suspicious activity. Experts recommend avoiding the use of public Wi-Fi networks for financial transactions and only downloading applications from trusted sources.

The rise in contactless fraud highlights the need for a multi-pronged approach to online security. Banks must continue to invest in robust security systems, while educating customers on best practices to protect their financial information.

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