Authorities in Indiana, Tennessee and Washington are warning consumers that a growing scam exploits the convenience of contactless payments. Fraudsters approach shoppers or event‑goers, claim to collect money for schools, youth groups or charities, and ask for a small donation via tap‑to‑pay.
How the scam works
After a donor agrees to give a modest amount—often $5, $10, $15 or $20—the scammer enters a much larger sum into the payment device before the victim taps their phone, smartwatch or card. If the donor does not check the amount displayed on the screen, they may unknowingly authorize a charge of several thousand dollars.
Real‑world examples
Police in Brentwood, Tennessee, reported incidents where shoppers were charged $2,000 or more after agreeing to a $20 donation. In Washington state, the attorney general’s office received reports of a $4,800 charge after a donor thought they were giving $15, and another case where a $20 pledge resulted in a near‑$5,000 bill.
Expert insight
Cybersecurity specialist Kurt “CyberGuy” Knutsson, writing for Fox News, explained that while mobile‑payment systems use tokenization and virtual card numbers to protect card details, they cannot stop a user from approving an inflated amount. The payment network treats the transaction as authorized once the customer authenticates it.
Protective steps
Consumers are urged to always verify the amount displayed on the merchant’s device before tapping. After the transaction, reviewing bank statements or payment‑app histories can help catch any discrepancies. The Federal Trade Commission also recommends checking financial statements to ensure the charged amount matches the intended donation.
Legitimate charities should never pressure donors to act quickly, and they typically provide clear, written receipts. If a solicitation feels rushed or the amount on the screen seems incorrect, it is safest to decline the tap and report the incident to local law‑enforcement.
Original reporting: WOWO News/Talk (Fort Wayne) — read the source article.
