So this has been a known issue for quite awhile, but is now becoming more and more of a concern... Especially in larger cities. People that walk by you, in the streets or at the store can virtually steal your credit information with seconds.
Its very easy to steal data from the cards. An inexpensive credit card reader can get at the data from a few inches away, even if the card is in a purse or wallet. So a crook can put the reader in a brief case, sidle up to someone and steal data undetected. There are also apps that make it possible to do this using nothing more than a smartphone.
Credit card issuers have taken steps to combat this in a number of ways. These include having security codes that change after every use, which limits damage to one fraudulent transaction. Some also use additional security questions. However, researchers are divided on how effective this is. At last year's Shmoocon hacker conference, Kristin Paget of Recursion Ventures did a demonstration on stage in which she stole data from an RFID card and then used it for a purchase.
There are very simple steps you can take to diminish this threat even further. A number of companies now sell wallets that have RFID blockers built in. In 2011, Consumer Reports found that many of the blockers didn't perform as well as promised and that none did as well as simply wrapping the cards in tinfoil. A slightly more attractive option: credit card sleeves made of Tyvek, a material made of high-density polyethylene fibers. They are inexpensive -- 50 cents buys you added security, and you don't have to explain why your wallet is covered in tinfoil.
Source: http://www.cbsnews.com/8301-505123_162- ... ess-theft/
A new kind of thievery or, at least, potential for fraud is on the rise: Criminals who can steal your credit card data by walking by you with electronic scanners, maybe even with their mobile phones. It's easy, however, to protect yourself.
The new threat exists because of the radio-frequency identification chips (RFID) or Near Field Communication (NFC) chips that are starting to be embedded in credit and debit cards. A modern thief can use this "swipe to pay" technology to capture your info by scanning your wallet or purse with an electronic scanner. It's not as easy for electronic pickpockets to get your wallet, however, as simply bumping into you, the Wall Street Journal's MarketWatch explains. The thief would have to hold the scanner next to your wallet or purse, unmoved for about 30 seconds, so you'd likely notice it—unless you were distracted or left your belongings unattended for such a time.
As in this video showing the same security issue with Barclays' contactless credit cards and how thieves can get the credit card info with an NFC-enabled mobile phone:
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