Credit Card Cloning

Credit card fraud can happen in a myriad of different ways; one of those is the credit card cloning. The truth is that credit card fraud is getting worse. It is one of the largest problems in the UK at the moment with cloning at the top. The Bedfordshire Police have recently been watched to see just how they are dealing with the issue. The research found that fraud on credit card transactions occurs every 8 seconds and cloning as mentioned is the worst of it all. Last year in the credit card fraud department a total loss of 425 million pounds was accumulated.

Basically what happens is cloning works in a matter of seconds. While the card is swiped for a normal transaction the cloning happens due to dishonest staff, then your details are downloaded to a computer and a duplicate card is made. You will not see the charges until the next statement, unless you go online. The cloner can spend at their own will and max out the card.

Restaurants are a high area for cloning because it is the best opportunity. Your card is usually taken from the table for your convenience and run on a machine out of your site. This has happened to several individuals. Many go out for a business lunch or other meal and it is not until the police or card company notify the person that they realize their card has been stolen.

Some individuals have found more than 1200 pounds used on their card before it is stopped. From this they have learned to never let their card out of their site. In fact they tend to follow the person with the card even in a restaurant. This helps keep the card protected.

Signatures are supposed to be a proof of ownership for the card. Most of the time the staff at shops and retail locations fall down on their job. They don’t even ask to see ID or anything according to a study. One individual decided to take a hidden camera and his wife’s card to three different retailers: a petrol station, electrical store, and DIY store.

The assistants at all three stores didn’t spot that this person’s signature didn’t match up to the card. In fact they didn’t even notice it was a woman’s name on the card. The retailers are simply missing the details because they don’t seem to care or are too embarrassed to mention it. With the way things are it will be extremely hard to get the identity theft stopped.

There have been some operations that are trying to crack down on the fraud issue. Card cloning happens on the local level, but it is not a small operation. Cloning has been found to be highly organised crime. Criminals are taking easy money and funding a complete syndicate. They are also using what they steal for terrorism, immigration, and of course purchases to sell again.

There are a few things they are doing to try and stop the criminals on the credit card company end. The card companies are adding a chip and pin system to the credit cards. This means you must use a pin to activate the transaction. It makes card cloning nearly impossible because the chip is not as easy to read as the magnetic strip. Studies are showing it could wipe out 50% of the card fraud. The pin cards will be offered to everyone by 2010. Without this system by that same year a billion pounds could be lost to credit card fraud if the action doesn’t stop.

At this point in time vigilance of your card is the only true way to stop credit card fraud. You should never let your card out of your sight. You should also make sure you continually watch your account statement online. This will get the fraud stopped sooner than waiting for the documents in the mail. Think twice before allowing your card to leave your sight or you could be footing the bill. It is up to you to take care of yourself and monitor your card. The card companies have too many consumers and not enough of a monitoring system to catch every theft.

Back To Financial News May 2008

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Credit Card Cloning
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