Visa warns that -digital pickpocketing- is a new crime modus operandi and recommends setting up shopping alerts in your account_2

In anticipation of the Money20/20 conference taking place in Las Vegas from October 27 to 30, Visa, a leader in digital payments, released its Fall 2024 Fraud Report on October 25. The report highlights a range of fraud tactics targeting banks and consumers, with a new method emerging known as “digital pickpocketing.”

Titled “Fraud Landscape: Fall 2024 Semi-Annual Threat Report,” Visa’s document reveals a resurgence in physical theft incidents over the past six months, alongside a worrying upward trend. Criminals are leveraging stolen payment information and credit card numbers to purchase gift cards and physical products for resale, with some even using these assets for online transfers.

Additionally, Visa has been tracking the rise of “digital pickpocketing” since March 2023, a method that is increasingly expanding. This tactic primarily involves the use of mobile point of sale (mPOS) systems, originally designed to facilitate transactions through smartphones, tablets, or wireless devices.

Criminals often exploit mPOS devices in crowded locations to discreetly steal consumers’ credit card information from wallets and initiate payment processes. Michael Jabbara, Visa’s Senior Vice President and Global Head of Fraud Prevention, highlighted the difference between traditional pickpockets and digital pickpockets. While traditional thieves steal physical belongings, digital pickpockets target financial information. He urged consumers to remain vigilant and aware of their surroundings to guard against these digital threats, just as they would against old-fashioned thefts, noting that criminals frequently prey on distracted individuals.

Jabbara recommended that consumers set up real-time transaction alerts on their accounts. If an unauthorized purchase occurs, they should immediately contact their bank—a proactive measure that not only safeguards their interests but also helps protect other potential victims.

The report also indicates that fraudsters tend to take advantage of busy travel seasons, targeting consumers who are in the process of planning trips. One prevalent scam involves fraudulent websites that mimic major airlines’ platforms, enticing consumers with low-priced deals while subsequently stealing personal information and money.

Jabbara emphasized that if consumers suspect any foul play, they should promptly reach out to their financial institution, change their passwords, and ensure that two-factor authentication is correctly set up. In the event of confirmed theft, it is crucial to report the incident to local law enforcement authorities immediately.