Banks have refused to say how many times a card can be used after it has been cancelled, citing security reasons.
Some indicated the cards could only be used for a ‘low number’ of purchases up to the value of £50.
But lawyers say banks’ failure to warn customers about the security risk means they could be breaching industry regulations. Watchdog the Financial Conduct Authority said it was ‘urgently’ working to solve the problem.
A spokesman told the Daily Mail: ‘In a limited number of circumstances, it is possible for a cancelled contactless card to be used by fraudsters. While there are controls in place and the overall risk is low, the FCA has been urgently working with card schemes and banks to ensure this issue is fixed.’
The use of contactless cards has soared in recent years and ‘tap and pay’ now makes up one in four of all card payments.
There is a grey area regarding who takes responsibility for money that goes missing from a customer’s account after a contactless card is stolen. In theory, the bank should pick up the transactions and refund the money automatically, but it seems some expect the customer to spot them.






