During the first half of this year, 23 million credit cards were stolen worldwide, according to cyber threat intelligence company Sixgill. About two-thirds of those stolen card numbers were issued in the U. For many, gaining credit card numbers is about more than simply making fraudulent purchases — although they do that as well, cyber-security expert Joseph Steinberg tells CNBC Make It. Credit card numbers can be converted into cash by buying up gift cards and purchasing easily sellable items to resell through online marketplaces such as eBay, Steinberg says. Then there are the criminals who are interested in the big hauls. In many instances, the fraudster is actually selling your credit card number to other cyber criminals. Let’s say you have a trove of credit card data, such as the Marriott data breach which compromised, among other pieces of data, credit and debit card payment information for million people.
1. A blowout shopping spree
Your credit card information can be stolen right under your nose without your credit card ever leaving your possession. Often, fraudulent credit card charges are the first sign that credit card information has been stolen. Fortunately, there are a few steps you can take to clear your name and get your credit card accounts under control. Instead, they get it somewhere else in the credit card processing chain. Here are a few ways thieves can get access to your credit card information. Hacking into other businesses. Since data breaches target entire organizations, sometimes millions of consumers have their credit card information stolen. Most mega data breaches — like Target, Home Depot , JP Morgan Chase, and Anthem — make headline news, but there are hundreds of relatively smaller data breaches that we never hear about. Businesses aren’t always required to notify customers whose information has been stolen in a data breach. A credit card skimmer is a small device that captures your credit card information in another otherwise legitimate transaction. Thieves secretly place credit card skimmers over the credit card swipe at gas stations and ATMs then return to retrieve the information captured.
2. ATM withdrawals
Installing malware or viruses on your computer , tablet or smartphone. In one instance, hackers take advantage of public wi-fi to trick people into installing malware disguised as a software update. The software monitors your keystrokes or takes screenshots of your page and sends the activity to the thief. Tricking you. Thieves set up traps to trick consumers into giving up credit card information. They do this by phone, by email, through fake websites, and sometimes even via text message. Old-fashioned dumpster diving.
2. Fraudulent phone calls
Funds issued as credits to hacker-controlled debit cards can then be withdrawn at cash machines. Net credit card processing, the largest online payment processor. But the numbers themselves have very little value. Using them to buy merchandise is risky, for example, as it involves a shipping address, which can be traced. In that case, criminals broke into the store and manually refunded hundreds of legitimate store charges to their own debit cards during one frantic late night. They raced to refund nearly every charge the store had billed in recent months. I have friends who are doing it. Another reason the scam is popular is that criminals have discovered several ways to access powerful merchant accounts that route charges through Authorize. According to a recent company press release, , merchants use Authorize.
Disclaimer
Please help us credot our content by removing questions that are essentially the same and merging them into this question. Time: 0. Our opinions are our. Average: 5 1 vote. If the security number on the back is added, the price t up. A simple form of money laundering is for criminals to use the stolen credit card to buy up a large number of high-denomination gift cards. When your card details are breached, it’s not always the thief’s intention to use the information on goods or cash withdrawals. Now, the criminal has all the time in the world to spend them, or sell them to someone else, because these cards are percent legit and won’t be shut. Robbers are very clever people. Ads by Google. Make sure to use your EMV card by inserting it into the payment terminal, following the prompts and removing the card once ogf receipt starts printing.
Taking extra precautions
Credit card fraud can happen to anyone, but there are things you can do to lessen your risks of becoming a victim. Skimmed information can be used to produce a counterfeit card — for instance, it may be loaded onto a prepaid card.
Skimming happens a few different ways. It could occur when your credit card is removed from your possession, like at restaurants when you hand over your card to pay your check. It may also happen via a skimmer attached to a third-party card reader, like those on pumps at the gas station or on ATMs. Make sure to use your EMV card by inserting it into the payment terminal, following the prompts and removing the card once the receipt starts printing. If you swipe it normally, it will process as a magstripe transaction with static data.
It can occur via email, phone, text or snail mail. How to avoid a phishing scam: According to Visa, you should be wary of emails, mail, calls or texts requesting personal information, regardless of the source. How to avoid a spyware attack: To avoid a spyware attack on your personal computer, Microsoft recommends that you download anti-virus software and read disclosures before downloading anything off the Web.
Thieves may go through your trash and piece together your identity with personal information. To combat this, instead of just tossing your financial- and medical-related mail, shred it.
Also, when possible, opt for email communications instead of snail mail. EMV is the way to be. Be a skeptic. Whether you call it cautious optimism, realism or straight-up skepticism, you should be cognizant that scams exist and you could be the victim. If your card information is stolen, keep your perspective. Erin El Issa is a staff writer covering personal finance for NerdWallet. At NerdWallet, we strive to help you make financial decisions with confidence.
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John Harper, cleveland. March 30, More money is stolen through credit card fraud in the United States than in the rest of the world combined, according to Business Insider. This slide show will provide a window into how it is. All information in this slideshow was obtained through police investigations used to prosecute criminals, many of whom are now serving lengthy jail sentences. Here’s how they commit their crimes, step by step. Step 1: Buying card numbers over the «dark web». The organized criminals who actually steal credit card numbers are typically separate entirely from the organized criminals who take the stolen card numbers and turn them into cold, hard cash. Previously: How criminals steal your credit card numbers. The vast majority of credit card number thefts now happen without the actual credit card owner even knowing about them, according to May. The tricky part is taking those stolen numbers and actually using. Alternate: Steal moms’ purses instead. One notorious national credit card theft ring, dubbed the Felony Lane Gang, doesn’t bother with internet data or fake cards. Busy mothers are occupied with screaming kids and are more likely to leave their purse in their car. Step 2: Recruiting some help.
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