What to know if you’re using NFC’s (and you probably are)

By Editor | December 30, 2024

NEWS FROM THE BETTER BUSINESS BUREAU

If you have a smartphone purchased in the last few years, it almost certainly came with NFC capability.
The technology allows users to effortlessly transfer money, share files and knock out a growing list of other tasks. But that data transfer can create vulnerabilities.
What exactly is NFC?
NFC stands for Near Field Communication. It’s a data transfer that only works within a very short physical range. We’re talking inches, not feet. Some forms of this technology require you to tap one device against another or wave them back and forth in close proximity.
NFCs are based on RFID (radio frequency identification) technology, a process that uses radio frequencies to identify objects.
What does it do?
NFC uses a series of protocols to make transactions easier and faster like contactless payments, sharing digital content, connecting devices, and a list of other tasks that gets longer every day.
How do they work?
An NFC relies on proximity, so when users get close to a device they want to interact with, typically, they receive a prompt asking for permission. They follow on-screen prompts from there. It’s convenient because it doesn’t involve downloading an app or signing up to get started.
What smartphones come with NFC?
Android devices running 4.0 or later come with the ability to use NFCs for financial transactions. Phones with Android 4.4 or later allow users to exchange files and messages via NFC.
iPhone was a little later to jump on the bandwagon. However, if you have an iPhone 6 or later, it supports Near Field Communications.
Convenience is great, but if you’re like most people, you might recognize when data is just floating around, there’s a security risk, especially when technology is linked to your credit card or bank account. So how risky is NFC technology?
The good thing is if you’re bumping your phone with a friend’s to share music or checking out with a trusted vendor, the security risk is fairly low because of the proximity requirement. Devices must be four centimeters or less apart, and during the split seconds the data transfer actually takes to occur, it would be hard for a hacker to get in there without you noticing.
It takes more than just a bump for a transaction to occur; both sending and receiving devices must be ready to accept the data transfer. It would be difficult for a hacker to brush against you in a crowd and wirelessly withdraw from your bank account. You’re not likely to collide with a stranger in the grocery store and accidentally send their phone all your personal information. But that doesn’t mean NFCs are without risk.
One problem happens when people lose their phones or have their devices stolen. If a thief can unlock your device, or if you don’t secure it with a strong password, there’s nothing to stop him or her from waving it over a payment terminal or ATM to get your money.
NFC tags are also vulnerable to tampering. For example, users have tapped smart tags thinking they were about to access movie trailers or visit a vendor website but instead had their personal information sent to a bad actor.
General NFC security tips:
Turn NFC off when not in use; Be mindful of proximity; Use secure apps and devices; Enable device authentication; Monitor permissions; Avoid connecting to unknown devices; Encrypt sensitive data