As the holiday shopping season approaches, some local retailers are on high alert after a security issue with tap-to-pay technology.

Stewart’s Shops, a convenience store chain that's prominent in some regions, has temporarily halted the payment method due to fraudulent activities. 

What You Need To Know

  • Stewart's Shops has paused tap-to-pay services due to fraudulent activites
  • The scam involved the use of illegally obtained credit cards  
  • Affected stores are in the Hudson Valley and Catskill regions
  • No customer data was compromised during the incidents
  • The company is working on a software fix, but has no timeline for resuming tap-to-pay

A recent fraud incident at Stewart’s Shops raised concerns about contactless payment options. The scam occurred multiple times at shops in the Hudson Valley and Catskill regions. Once aware, the company immediately halted tap-to-pay operations.

“The first incident was Oct. 19, and two days later, we shut everything down,” said Robin Cooper, public relations manager at Stewart’s Shops.

Tobacco products and alcohol were commonly purchased with what store officials say were illegally obtained credit cards. The company is working to fix a software loophole, but has no timeline for restoring the payment feature.

“It’s an inconvenience to our current customers. We do have a patch that we’re working on,” Cooper added.

Cooper assures customers that no personal data was compromised.

“This was not a breach; no customer information is at risk,” Cooper emphasized.

Still, consumers should be wary this time of year, especially with using their credit cards in person.

Tim Weber, vice president of Channel Growth at Cyber 74, warns about skimmers on credit card readers: “A skimmer is a device that overlays or plugs into the existing credit card reader, acting as a man-in-the-middle reading all of your information.”

To help protect your credit card information, visit the Better Business Bureau here.