Attack of The Card Cloners

James

An excellent article by Mike Barwise and Daniel Bachfeld provides lots of information (forwarned an all that) on card cloners and their M.O.


Criminals are cleaning out bank accounts with stolen card data. Their methods are quite simple, and yet so clever that bank customers hardly stand a chance.

Story click here.


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In the UK, the Banking Code (PDF file) section 12.12 states "Unless we can show that you have acted fraudulently or without reasonable care, your liability for the misuse of your card will be limited..." essentially to a maximum of 50 UK pounds. However, the code is voluntary, and the onus is usually still on the customer to prove the fraudulent nature of the transaction. The initial position of the UK banks is generally to insist that customer has exhibited contributory negligence.


In other jurisdictions, notably Germany, banks have so far covered all the losses from skimming as a gesture of goodwill provided evidence could be demonstrated that fraud had indeed occurred. There has reportedly been no case in which a German bank has left a victim empty-handed.

C_Ronaldo

So what are the banks going to do about it

marleyboy

I was always against the idea of internet banking when it first came out, mainly because it was inevatable that the security would eventually be breached, card skimming isnt new, but its popularity has soared since the ease of buying the equiptment has become much more simpler.

I never buy online, mainly because I dont trust the internet with my credit card details. As for cloning, its far safer to get cash from inside the bank.

I know a garage near my works where they have been caught swiping customers cards. I even know of a case in Big W, where a member of staff was caught "skimming". And there just the cases I know about. You cant trust anyone nowadays. I only really trust in cash, I trust the banks effectiveness, far less than I trust the card skimmers.

James

Todays Guardian:

"whole communities are losing faith in bank cards and chip-and-pin technology"

Story click here.