While this technology is much more secure than the magnetic strip alternatives, even EMV technology has its vulnerabilities.įor starters, many POS terminals allow transactions to be completed using both magnetic stripe and EMV options. EMV chips use encrypted payment information that makes it extremely challenging for fraudsters to clone cards. One of the biggest advancements in the fight against card cloning is the advent of EMV (Europay, Mastercard, Visa) microchips that act as safer, encrypted alternatives to magnetic stripes. How Big of a Problem is Card Cloning?ģ Ways Financial Institutions Can Fight Credit Card Cloning Fraud Implement EMV Chips In the United States, the FBI recently arrested six people for stealing over $200,000 from gas stations using card skimming technology. In India, more than 350 cloned cards were seized by police just last month. Last year, police in Ireland arrested a pair of men and seized 66 credit cards that had been cloned using skimmers. Examples of Credit Card CloningĬard cloning is a global phenomenon that surged by 34% across all regions according to Feedzai research. Contactless technology has made it possible for fraudsters to steal numerous card numbers using remote scanning devices simply by walking down a crowded street with a concealed scanner in their backpack or purse. The cardholder might not realize something has happened until they check their financial statements, bank accounts, or see a change in their credit score.Ĭloning doesn’t need to be physically done anymore, either.
Once they have collected this information, they can take the stolen credit card information, PIN, and CVV data to make a new, physical card to make fraudulent purchases in the real cardholder’s name. They are also cheap and can be obtained through online purchases.įraudsters can implement a fake keypad on the POS terminal or ATM that allows them to steal the real cardholder’s PIN information. These skimming devices act as card readers that collect an unsuspecting victim’s credit card information – including card numbers, PINs, and CVV data – by reading the magnetic stripe on the back of the physical credit card or debit card. Fraudsters typically rely on technologies like skimmers, small devices that can be affixed to hardware like point of sale (POS) terminals at a physical retail location or even at an ATM.
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