WASHINGTON, D.C. — The Federal Bureau of Investigation (FBI) has issued a nationwide alert warning that NFC (Near-Field Communication) and contactless card cloning attacks have surged dramatically in 2025. Criminals are exploiting both hardware-based and software-based vulnerabilities in tap-to-pay systems, making contactless fraud one of the fastest-growing forms of financial crime in the United States.

This announcement follows a series of FBI Internet Crime Complaint Center (IC3) reports showing that stolen tap-to-pay credentials have more than tripled in the past 24 months. The agency notes that criminals are now using advanced wireless skimmers, AI-enhanced card testing scripts, and fraudulent merchant terminals to capture card information from close range.

These findings directly connect to CFRB’s education guide,
“Credit & Debit Card Fraud in 2025–2026: How Criminals Steal Your Card Data & How to Protect Yourself.”


🔥 Contactless Card Fraud Growing Faster Than Traditional Skimming

According to the FBI’s early-2025 Consumer Fraud Brief:

  • NFC/contactless theft is up >300% since 2022
  • Millennials (24–44) report nearly double the victim rate of older adults
  • Criminals increasingly use portable wireless readers in crowded locations
  • Tap-to-pay fraud now accounts for over 22% of card-present crime

The FBI warns that criminals no longer require physical skimmers. Many now operate wireless digital skimmers that:

  • Read NFC signals when a card or phone is near
  • Intercept partial encryption packets
  • Capture wallet metadata
  • Trigger unauthorized “microtransactions”
  • Clone digital wallet tokens for testing

While NFC encryption is strong, criminals exploit:

  • Buggy merchant terminals
  • Fake tap-to-pay readers
  • Exposed fallback protocols
  • Compromised store kiosks

This makes tap-to-pay the newest frontier in card fraud.


🧲 How Criminals Steal Contactless Card Data in 2025

The FBI highlights several techniques:

1. Wireless Skimmer Pucks

Small round devices hidden under countertops or near payment terminals.
They capture partial NFC data when a customer taps.

2. Rogue Mobile Terminals

Criminals use off-the-shelf handheld POS devices disguised as:

  • Delivery scanners
  • Inventory devices
  • Staff terminals

These devices can charge small amounts without user consent.

3. Transit & Event Crowd Scanning

Criminals walk near victims in:

  • Airports
  • Concerts
  • Subways
  • Shopping malls

Scanning for wireless wallet signals.

4. Fake Digital Wallet “Push Payment” Requests

Victims receive fraudulent pop-ups requesting:

  • “Tap to verify identity”
  • “Tap to reconnect payment method”

Criminals trigger these requests from compromised merchant apps.

5. Deepfake Merchant Terminals

Terminals cloned to appear legitimate while forwarding data to a rogue server.


🎯 Why Millennials Are the #1 Target

The FBI lists several reasons:

High adoption of tap-to-pay

Millennials use contactless transactions 3× more than Boomers.

Heavy smartphone wallet use

Apple Pay, Google Pay, and Samsung Wallet usage is highest among this group.

Constant travel & public mobility

More time spent in airports, cafes, coworking spaces, concerts, gyms, and public transit.

Frequent e-commerce and app payments

Higher exposure to fraudulent merchant apps.

Digital lifestyle = high convenience habits

Scammers rely on the assumption that millennials tap quickly without inspecting devices.

The FBI calls millennials “the perfect demographic for NFC-based exploitation.”


🏦 Banks Confirm a Spike in Tap-to-Pay Fraud Claims

Several major U.S. banks — including Chase, Bank of America, Wells Fargo, and Capital One — report that:

  • Tap-to-pay fraud claims increased over 150% in the past 12 months
  • Many victims never removed their card from their wallet
  • Fraud often begins with $1–$4 “micro-transactions”
  • Criminals test stolen contactless cards using vending machines and unattended kiosks
  • Some cloned tokens bypass standard fraud filters

Banks warn that because these transactions appear card-present, they are sometimes harder to dispute.


🛠 DOJ Warns Contactless Fraud Rings Are Now Operating Like Organized Cyber Groups

A recent DOJ cybercrime task force report revealed that:

  • Contactless fraud rings operate across multiple states simultaneously
  • Stolen data is shared through encrypted messaging channels
  • AI bots test card tokens using automated scripts
  • Teams specialize in installing wireless skimmers at popular retail chains
  • Counterfeit terminals are ordered through overseas suppliers

The DOJ warns:

“Tap-to-pay fraud is evolving from isolated incidents to organized digital crime, often involving coordinated teams and imported technology.”


🧪 NFC Cloning: What Criminals Actually Get

CFRB’s analysis explains that criminals do not normally get full card numbers from contactless theft.

However, they can capture:

  • Partial token data
  • Card issuer metadata
  • Wallet-specific identifiers
  • Expiration date range
  • Transaction counters
  • Unique device signatures
  • Certain fallback elements used in older readers

With the help of AI, criminals can:

  • Test which portions are usable
  • Reconstruct partial token streams
  • Trigger fraudulent tap events
  • Run microcharges to test card validity
  • Sell the data on fraud markets

🔐 How to Protect Yourself From Contactless Card Fraud

Federal agencies recommend:

Use a digital wallet instead of a physical card

Digital wallet tokens rotate and cannot be cloned easily.

Keep “tap-to-pay” turned off when traveling or in crowds

Turn it on only when needed.

Enable instant transaction alerts

Your bank should notify you of every tap event.

Review microcharges

Watch for $1 or $2 transactions — early-warning signs.

Use RFID-blocking wallets

These block unauthorized wireless reads.

Inspect terminals before tapping

Avoid devices that look bulky, loose, or altered.

Avoid tapping on kiosks with no security seals

Especially:

  • Gas pumps
  • Ticket machines
  • Vending kiosks
  • Outdoor payment stations

📌 Final Takeaway

The FBI warns that contactless card cloning and NFC-based attacks will continue to escalate in 2025, driven by organized crime groups and advanced wireless skimming technology.

Consumers who rely heavily on tap-to-pay systems must take additional precautions to reduce their exposure.

For complete safety guidance, see CFRB’s educational article:
Credit & Debit Card Fraud in 2025–2026: How Criminals Steal Your Card Data & How to Protect Yourself.