Fear over increase in card ‘tap and go’spend

Increasing the contactless payment spending limit could fuel a rise in thefts and fraud, consumer and banking figures have warned.

The amount that can be spent on “tap and go” contactless cards is more than doubling from £45 to £100.

Eight out of 10 UK adults used contactless payments in 2019, and the rise on limits will mean millions of payments will now be made simpler, the government said.

Although the decision may be welcome news for shoppers, some have warned that the increase in funds available to spend without typing in a pin could be seized on by criminals.

Gareth Shaw, head of money at consumer research and advice body Which?, said: “The risk of falling victim to contactless card fraud is currently low, but there is potential for thefts to rise if criminals take advantage of the increased spending limit to maximise the amount they can steal.”

Ricky Lee, chief executive and cofounder of banking app sync, said contactless payments are a “good thing” but warned: “It is vulnerable to fraud.”

He added: “There is always a chance that thefts could rise as criminals are tempted by the increased contactless limits.

“A criminal could spend hundreds of pounds in just a few minutes, so a payment card can be a big target.”

Andy Renshaw, from Feedzai, a data science company that looks at fraud risk for financial institutions, said: “While done with the objective of boosting high street shopping, this move means that banks will have to work even faster to identify and block potentially suspicious transactions.”