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This report explains recent developments in relay attacks on contactless smartcards and secure elements. It further reveals how these relay attacks can be applied to the Google Wallet. Finally, it gives an overview of the components and results of a successful attempt to relay an EMV Mag-Stripe transaction between a Google Wallet device and an external card emulator over a wireless network. Recently, there have been several publications on relay attacks on contactless smartcards and secure element-enabled mobile devices. However, relay attacks on contactless smartcards are not new. In 2005, Hancke first showed that it is possible to relay contactless smartcard communication (ISO/IEC 14443) over longer distances through an alternative communication channel.
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