Contextual proximity detection (or, co-presence detection) is a promising approach to defend against relay attacks in many mobile authentication systems. We present a systematic assessment of co-presence detection in the presence of a context-manipulating attacker. First, we show that it is feasible to manipulate, consistently control and stabilize the readings of different acoustic and physical environment sensors (and even multiple sensors simultaneously) using low-cost, off-the-shelf equipment. Second, based on these capabilities, we show that an attacker who can manipulate the context gains a significant advantage in defeating context-based co-presence detection. For systems that use multiple sensors, we investigate two sensor fusion approaches based on machine learning techniques: features-fusion and decisions-fusion, and show that both are vulnerable to contextual attacks but the latter approach can be more resistant in some cases.