Misuse of Contactless Payment Cards with Radio-Frequency Identification

Libor Klimek

Abstract

Counterfeiting of means of payment is one of European crimes. The Treaty on the Functioning of the European Union lists counterfeiting of means of payment as one of the areas of particularly serious crime with a cross-border dimension. At the European Union level a brand-new legislative instrument harmonising counterfeiting of means of payment has been adopted – the Directive (EU) 2019/713 on combating fraud and counterfeiting of non-cash means of payment. This Directive establishes minimum rules concerning the definition of criminal offences and sanctions in the areas of fraud and counterfeiting of non-cash means of payment. Moreover, it facilitates the prevention of such offences, and the provision of assistance to and support for victims. The Directive is addressed to the Member States of the European Union. They shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31st May 2021.

The contribution deals with criminalisation of the misuse of contactless payment cards with Radio-Frequency Identification (RFID) technology. It is divided into three sections. The first section focuses on definition of Radio-Frequency Identification and payment cards with Radio-Frequency Identification. The second section focuses in detail on a new European Union approach to combat counterfeiting of means of payment addressed to its Member States – i.e. the Directive (EU) 2019/713 on combating fraud and counterfeiting of non-cash means of payment. The last third section is focused on non-legislative prevention possibilities.

Keywords

Criminal Offences; Criminalisation; Directive (EU) 2019/713 on Combating Fraud and Counterfeiting of Non-Cash Means of Payment; Payment Cards with Radio-Frequency Identification; Prevention; Radio-Frequency Identification (RFID); Sanctions

Full Text:

References

Show references Hide references

[1] Ahson, S. A., Ilyas, M. (2008) RFID Handbook: Applications, Technology, Security, and Privacy. Boca Raton: CRC Press.

[2] Could you fall prey to a contactless conman? How thieves can take money from your card as you’re walking down the street. [online] Available from: https://www.dailymail.co.uk/news/article-3849368/Could-fall-prey-contactless-conman-thieves-money-card-walking-street.html [Accessed 18 October 2016].

[3] Council Framework Decision 2001/413/JHA of 28 May 2001 on combating fraud and counterfeiting of non-cash means of payment. Official Journal of the European Communities (L 149/1) 2 July. Available from: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32001F0413 [Accessed 8 November 2019].

[4] Council Framework Decision 2008/841/JHA of 24 October 2008 on the fight against organised crime. Official Journal of the European Union (L 300/42) 11 November. Available from: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32008F0841 [Accessed 8 November 2019].

[5] Directive (EU) 2019/713 of the European Parliament and of the Council of 17 April 2019 on combating fraud and counterfeiting of non-cash means of payment and replacing Council Framework Decision 2001/413/JHA. Official Journal of the European Union (L 123/18) 10 May. Available from: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019L0713&from=EN [Accessed 8 November 2019].

[6] European Commission. (2011) Towards an EU Criminal Policy: Ensuring the effective implementation of EU policies through criminal law. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, COM(2011) 573 final. Available from: https://db.eurocrim.org/db/en/doc/1626.pdf [Accessed 8 November 2019].

[7] European Commission. (2017) Proposal for a Directive of the European Parliament and of the Council on combating fraud and counterfeiting of non-cash means of payment and replacing Council Framework Decision 2001/413/JHA, COM(2017) 489 final. Available from: https://ec.europa.eu/transparency/regdoc/rep/1/2017/EN/COM-2017-489-F1-EN-MAIN-PART-1.PDF [Accessed 8 November 2019].

[8] Fernándes-Caramés, T. M., Fraga-Lamas, P., Suárez-Albera, M., Castedo, L. (2017). A Methodology for Evaluating Security in Commercial. In: Paulo Crepaldi, ‎Tales Pimenta (eds.). Radio Frequency Identification. Rijeka: InTech. https://doi.org/10.5772/64844

[9] Funta, R. (2019) Úvod do počítačového práva. Brno, MSD.

[10] Han, Z., Xu, Y., Wang, R. (2014) The Summarize of Medium Access Control Protocol in RFID. In: Xue Wang, ‎Li Cui, ‎Zhongwen Guo (eds.). Advanced Technologies in Ad Hoc and Sensor Networks: Proceedings of the 7th China Conference on Wireless Sensor Networks. Heidelberg – New York – Dordrecht – London, Springer. https://doi.org/10.1007/978-3-642-54174-2_30

[11] How Do RFID Contactless Payments Work? [online] Available from: https://www.cardswitcher.co.uk/2019/03/rfid-contactless-payments/ [Accessed 8 November 2019].

[12] Ivor, J., Polák, P., Záhora, J. (2017) Trestné právo hmotné II: Osobitná časť. Bratislava: Wolters Kluwer.

[13] Maďar, M. (2016) Trestná zodpovednosť právnických osôb – historické aspekty. In: Dominika Cevárová (ed.). Interpolis ‘16. Zborník vedeckých prác z XIII. Medzinárodnej vedeckej konferencie doktorandov a mladých vedeckých pracovníkov konanej dňa 10. novembra 2016 v Banskej Bystrici. Banská Bystrica: Belianum.

[14] Nof, S. Y. (2009) Springer Handbook of Automation. Berlin – Heidelberg: Springer. https://doi.org/10.1007/978-3-540-78831-7

[15] Qiao, Y., Chen, S., Li, T. (2012) RFID as an Infrastructure. New York – Heidelberg – Dordrecht – London: Springer.

[16] RFID-blocking products are practically worthless. Here’s why. [online] Available from: https://www.digitaltrends.com/cool-tech/are-rfid-blocking-products-worth-your-money-we-asked-an-expert/ [Accessed 8 November 2019].

[17] Treaty on the Functioning of the European Union as amended by the Treaty of Lisbon. 26 October 2012 (C 326/47). Available from: https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:12012E/TXT:EN:PDF [Accessed 8 November 2019].

[18] UK Finance. (2019) Fraud the Facts 2019: The definitive overview of payment industry fraud. [online] Available from: https://www.ukfinance.org.uk/system/files/Fraud%20The%20Facts%202019%20-%20FINAL%20ONLINE.pdf [Accessed 8 November 2019].

[19] Vermeulen, G., De Bondt, W., Ryckman, Ch. (2012) Liability of Legal Persons for Offences in the EU. Antwerpen – Apeldoorn – Portland: Maklu.

[20] Walker, M. (2019) CEH Certified Ethical Hacker All-in-One Exam Guide. 4th ed. New York: McGraw Hill Professional.

[21] What Is RFID – Radio Frequency Identification? [online] Available from: https://www.iitms.co.in/rfid-based-attendance-system/what-is-rfid/ [Accessed 8 November 2019].

[22] What Is RFID Skimming? [online] Available from: https://www.tripwire.com/state-of-security/featured/what-rfid-skimming/ [Accessed 8 November 2019].

https://doi.org/10.5817/MUJLT2020-2-5



Copyright (c) 2020 Masaryk University Journal of Law and Technology