(Yicai Global) March 18 -- Crooks have made use of the Point of Sale system to steal money through China UnionPay's QuickPass function. 

The Shanghai-based financial service company has set up a 'full- compensation' safeguard mechanism with various commercial banks and will provide more convenient services for users to independently suspend and resume their use of the function, it said March 16, noting that bank card fraud is extremely rare.

The security issue of payment through UnionPay's QuickPass was exposed on the 315 Gala TV show aired on state broadcaster CCTV on March 15, World Consumer Rights Day. An amount less than CNY1,000 (USD148.9) can be stolen directly from the QuickPass cards without card holders' confirmation, passwords, or even any contact, by one holding a POS, video footage on the program showed.

QuickPass is the password- and signature-free service for small payments that the Shanghai-based firm launched in October 2015, and which can only be used with UnionPay's chip cards. Holders only need to place these cards or their mobile devices (for Cloud QuickPass) toward a POS terminal's sensor to pay by swiping if they spend less than CNY1,000 at designated shops.

QuickPass is not only convenient but also secure and is used widely worldwide, China UnionPay said, adding it and the commercial banks have focused on this issue and will continue to take measures to ensure secure use.

The firm will compensate losses in an equal amount within 72 hours after the report of a loss. Losses because of ID theft will also get the full-amount compensation even after 72 hours.

China UnionPay and commercial banks have announced this policy via to their cardholders through various channels.

The company will cooperate with police to combat unauthorized card use. The firm and other parties will also further improve their measures for technical prevention and control and continue to urge tighter management of POS terminals.

Editor: Ben Armour