Digital payment giant Visa recently issued a warning to consumers about a new form of theft known as “digital pickpocketing.” This alert came just before the Money20/20 conference, which takes place from October 27 to 30 in Las Vegas. On October 25, Visa released its Fall 2024 Fraud Report, highlighting various scams and threats targeted at banks and consumers. Among these, the report identified traditional scams alongside the emerging threat of digital pickpocketing.
In the report titled “Fraud Landscape: Fall 2024 Semiannual Threat Report,” Visa noted a resurgence in physical theft cases over the past six months, with an alarming upward trend. Criminals have been exploiting stolen payment information, credit card numbers, and other data to purchase gift cards or physical products, which they then resell; in some cases, the information is used for online transfers as well.
Since March 2023, Visa has been monitoring a rising trend of what is being termed “digital pickpocketing.” This method involves criminals using mobile point of sale (mPOS) systems to commit their crimes. Originally designed for legitimate transactions through smartphones, tablets, or wireless devices, these systems have been exploited by thieves in crowded locations to discreetly capture consumers’ credit card information and initiate payment processes.
Michael Jabbara, Visa’s Senior Vice President and Global Head of Fraud Services, explained the distinction between traditional pickpockets and digital pickpockets: while the former steals physical belongings, the latter targets financial information. He urged consumers to be aware of their surroundings to protect themselves from digital pickpockets in the same way they would guard against traditional thieves. He noted that criminals often prey on individuals who are distracted by other matters.
Jabbara recommended that consumers set up real-time shopping alerts on their accounts. If a transaction seems unfamiliar, they should contact their bank immediately. This action not only safeguards their own assets but also helps protect potential other victims.
The report also revealed that criminals take advantage of busy travel seasons to target consumers planning trips. Common scams involve fraudulent websites that mimic those of major airlines, luring consumers with irresistible deals while stealing personal information and funds.
Jabbara emphasized that consumers should contact their financial institutions right away if they notice anything suspicious. They should also update their passwords and ensure that two-factor authentication is correctly set up. If theft is confirmed, immediate reporting to local law enforcement is crucial.
