Do You Really Need an RFID-Blocking Wallet?

Should you be worried about RFID scams?

Technology experts and consumer protection advocates agree that RFID scams don’t pose a credible threat. “It’s just very theoretical fraud,” says Frank McKenna, chief strategist for Point Predictive, a San Diego-based fraud detection company.

Major credit card companies also stand behind the safety of RFID cards. “Fraud from skimming is very unlikely and limited in scope,” Visa’s website notes. Darius Kingsley, head of consumer banking practices at Chase, says “I personally don’t worry about this,” when asked about the use of RFID-blocking purses and wallets. “I think more of a risk than anything else is people being careless with their card numbers — writing them down, or having their card sitting out so someone else can see it.” 

Nevertheless, misinformation about RFID persists. Experts point to a few reasons why someone stealing their data remotely, through their wallet or purse, shouldn't be a big concern:

1. Proximity: Someone would have to get close — really close — to surreptitiously scan your card. That’s because credit and debit cards use a form of RFID called near field communication, or NFC. As the name implies, NFC only works at close range: usually a few centimeters. That means a scammer can’t read your card by simply standing nearby or walking past you.

2. Encryption: RFID cards generate a secure, one-time code for each transaction that masks your payment information. In addition, personal data such as your name and security number aren’t transmitted with that code — depriving would-be scammers of the information they need to make unauthorized purchases.

3. Consumer protections: Although highly unlikely, if a scammer managed to read and then use your card, such purchases would likely be intercepted or refunded according to your card issuer’s fraud policy.

Bottom line: RFID card scams are a high-effort, low-reward endeavor for criminals, who can more easily access personal and financial data through data breaches and other means.

Are RFID-blocking products legitimate?

While accessories featuring aluminum, carbon fiber and other specialized materials may indeed successfully block your card from communicating via RFID, many companies aren’t transparent about whether their products are truly protective — and so-called “RFID-blocking” accessories are often sold at premium prices without evidence that they live up to marketing claims.

There’s no downside to using RFID-blocking products for peace of mind, but McKenna and other experts note that they’re just not needed. “Don’t waste your money,” he says.

The best ways to protect your personal data

The threat of RFID fraud might be overblown, but McKenna emphasizes that other card-based scams such as skimmers, devices that steal data from your card’s magnetic strip, pose a real risk — as does having your personal data exposed in a data breach (which he says often leave older adults particularly vulnerable, as scammers assume they are high net-worth targets).

But there are key steps you can take to protect your financial data and personal information:

• Regularly monitor your bank accounts and credit card statements. Sign up for transaction alerts. If you see any suspicious or unauthorized charges, report them promptly.
• Monitor your credit rating. Request a free credit report from each of the three federal credit bureaus every 12 months. See www.annualcreditreport.com for more.
• Use strong passwords, and don’t repeat them across accounts. A password manager can help you generate and securely store hard-to-crack passwords.
• Avoid exposing your card longer than needed. “As soon as you get it back, put it back where’ it’s covered up,” says Kingsley, noting that rather than worry about someone stealing his card data remotely through RFID, he gets concerned about “having my card out at a restaurant and sitting on a little tray for ten minutes while I wait for the waiter to come and take it.”