Quote:How criminals exploit the familiar “tap your phone to pay” feature to steal your money.
 
Thanks to the convenience of NFC and smartphone payments, many people no longer carry wallets or remember their bank card PINs. All their cards reside in a payment app, and using that is quicker than fumbling for a physical card. Mobile payments are also secure — the technology was developed relatively recently and includes numerous anti-fraud protections. Still, criminals have invented several ways to abuse NFC and steal your money. Fortunately, protecting your funds is straightforward: just know about these tricks and avoid risky NFC usage scenarios.

What are NFC relay and NFCGate?

NFC relay is a technique where data wirelessly transmitted between a source (like a bank card) and a receiver (like a payment terminal) is intercepted by one intermediate device, and relayed in real time to another. Imagine you have two smartphones connected via the internet, each with a relay app installed. If you tap a physical bank card against the first smartphone and hold the second smartphone near a terminal or ATM, the relay app on the first smartphone will read the card’s signal using the NFS and relay it in real time to the second smartphone, which will then transmit this signal to the terminal. From the terminal’s perspective, it all looks like a real card is tapped on it — even though the card itself might physically be in another city or country.

This technology wasn’t originally created for crime. The NFCGate app appeared in 2015 as a research tool after it was developed by students at the Technical University of Darmstadt in Germany. It was intended for analyzing and debugging NFC traffic, as well as for education purposes and experiments with contactless technology. NFCGate was distributed as an open-source solution and used in academic and enthusiast circles.

Five years later, cybercriminals caught on to the potential of NFC relay and began modifying NFCGate by adding mods that allowed it to run through a malicious server, disguise itself as legitimate software, and perform social engineering scenarios.

What began as a research project morphed into the foundation for an entire class of attacks aimed at draining bank accounts without physical access to bank cards.

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