Credit Score Basics > Do aluminium credit card holders protect from fraud?

Do aluminium credit card holders protect from fraud?

Wollit Team2 minute read · Updated 29th June 2024

An aluminium credit card holder is a type of wallet or card case made from aluminium that is meant to protect your contactless cards from “RFID skimming.”

What is RFID skimming?

RFID skimming is a kind of electronic theft where criminals use specialised devices to wirelessly capture and steal data from RFID-enabled cards, such as credit cards, debit cards, and even passports.

Here's how it works in simple terms:

RFID-enabled cards transmit their data wirelessly using radio waves. This is how you can just tap to pay nowadays and don’t need to swipe or insert your card anymore.
Criminals can use handheld RFID reader devices to intercept and capture this data, usually from a short distance away, without your knowledge.
The stolen data can then be used for things like making unauthorised purchases or committing identity theft.

RFID skimming is a pretty easy crime to commit compared to other kinds of fraud, as it requires little technical expertise and cheap off-the-shelf devices.

Are aluminium card holders good at protecting me from RFID skimming?

Aluminium card holders can be decent defences against RFID skimming, although they’re not perfect:

Aluminium is one of the few materials that can effectively block RFID signals, preventing unauthorised access to card information.
Aluminium card holders are often designed to be slim and lightweight, making them easy to carry.
However, aluminium foil does not completely block RFID, it only prevents reading the information from long distances. It is not a guaranteed protection method.

How can someone RFID skimming my credit card details affect my credit score?

When a criminal skims your credit card, they usually get information that includes the card number and expiry date, which is enough for fraudulent online purchases.

Your credit score is a measure of how creditworthy lenders see you, based on factors like payment history, credit utilisation, length of credit history, etc. RFID skimming itself does not directly affect these factors.

However, if a thief steals your card details and makes fraudulent charges on your card, it could indirectly impact your credit score in a few ways:

If the thief racks up a high balance, it could increase your credit utilisation ratio, which hurts your credit score.
If they go over the credit limit, it again hurts your credit score (and you might have to pay additional fees, too).
While you dispute the charges, they may temporarily show up as late payments on your credit report until it’sresolved.

We’ve also seen reports from customers who complained that their credit card providers didn’t always remove the fraudulent charges from their statements. In situations like these, being on the hook for a large, unaffordable purchase can put you closer to a missed payment or even a default.

How should I keep my credit score safe from RFID skimming?

To minimise the risk and impact of RFID skimming:

Use an RFID-blocking wallet or sleeve;
Check your credit card statements regularly and dispute any charges you don’t recognise;
Report any fraud immediately to your card issuer;
Report the fraud to Action Fraud as well – this is the branch of the UK Police that deals with electronic fraud.
Consider using a credit card instead of a debit one, as credit cards have stronger fraud protections.

Also, you should keep in mind that in the UK, you have zero liability for fraudulent charges on your credit card if you report them as soon as possible. Your maximum liability for debit card fraud is capped at £50.

So while RFID skimming itself won't directly hurt your credit score, you should still try to prevent it and report any charge you don’t recognise. Regularly checking your credit report is also a wise move.