During a recent interview, Michael Jabbara, Visa’s Senior Vice President and Head of Global Fraud Services, addressed the rising concerns surrounding a new scam known as “digital pickpocketing.” This revelation came just ahead of the Money20/20 conference, held in Las Vegas from October 27 to 30, where Visa shared its latest findings in a report detailing various fraudulent tactics targeting banks and consumers.
“The landscape of fraud is evolving,” Jabbara stated, referring to the “Fraud Landscape: Fall 2024 Semiannual Threat Report.” Over the past six months, the report highlights a resurgence of physical theft incidents, where criminals exploit stolen payment information and credit card numbers to purchase gift cards or physical products, often reselling them or transferring funds online.
One alarming trend noted in the report is the emergence of digital pickpocketing, a technique that gained traction in March 2023. This method primarily involves the use of mobile point-of-sale (mPOS) systems, typically utilized for transactions through smartphones, tablets, or wireless devices. Jabbara describes how these criminals operate in crowded environments, employing mPOS devices to discreetly steal credit card information from unsuspecting consumers and initiate payments.
“Traditional pickpockets steal physical possessions, but digital pickpockets are after your financial information,” Jabbara explained. He emphasized the importance for consumers to remain vigilant of their surroundings to protect themselves against these new-age thieves, much like how one would safeguard against conventional pickpockets. “Criminals tend to target those who are distracted,” he added.
Jabbara also offered practical advice for consumers, suggesting they set up real-time purchase alerts on their accounts. If a transaction appears that wasn’t initiated by them, they should promptly inform their bank. “This not only safeguards your own finances but also helps protect potential victims,” he noted.
The report further identifies that criminals often exploit busy travel seasons, setting up scams aimed at individuals making travel plans. The most prevalent schemes involve fraudulent websites that imitate those of major airlines, luring consumers with attractive deals while ultimately stealing personal information and money.
“If consumers suspect any unusual activity, they should immediately contact their financial institutions,” Jabbara urged. He also stressed the importance of updating passwords and ensuring two-factor authentication settings are correctly configured. If theft is confirmed, reporting to local law enforcement is crucial for further action.
