Cards are very vital for different physical means of storing and transmitting the basic digital information which is required to authenticate, authorize and process transactions. This type of information mostly consists of card numbers, the cardholder’s name, security codes, expiration date, and a few other categories. Criminals can easily replicate this type of information and use it to commit fraud and illegal activities. Card cloning, often known as counterfeiting, is the technique of duplicating a bank card’s magnetic stripe and applying it to a second card. Once the customer’s personal identification number [PIN] has been retrieved, the cloned card may then be used to make transactions at point-of-sale devices and withdrawals from ATMs. This would apply to some debit cards, which furthermore need the proper PIN to be input on the point-of-sale device in order to complete the purchase.
Procedures of cloning
Skimming is the term used to describe the process of copying a magnetic stripe from a credit or debit card. The card is swiped through a skimming tool that resembles those used on point-of-sale equipment. The data on the magnetic stripe is then copied across to the magnetic stripe of another card. Because the information on a Clone card magnetic stripe is identical to that on the original, point-of-sale machines and ATMs cannot distinguish between them. The thief is then able to make withdrawals from the account using an ATM if he has managed to gain the customer’s PIN. Any magnetic stripe-equipped bank card may be duplicated. Credit cards, debit cards, and regular ATM cards fall under this category. However, until the thief also obtains the PIN, he won’t be able to make any transactions or withdrawals, depending on the cardholder’s specific card processing systems.
Evidence of cloning
It may sometimes be exceedingly challenging to tell whether a card was copied. When a consumer approaches the bank, they frequently deny authorizing or making specific transactions or withdrawals on their behalf. The bank must next look into the situation to ascertain what caused the loss. One should consider the claim’s context, as ATM and point-of-sale systems cannot distinguish between a real card and a counterfeit one. The greatest proof of Blank Credit Cards is when two distinct transactions happen quickly after one another at two sites that are far apart and make it impossible for the same card to have been used.
PIN and Chip
Smart card technology is being used in response to the significant losses incurred by the industry as a result of cloning. Now, bank cards will have a chip in them that costs a lot of money to copy. Then, in order to confirm any transaction, a PIN is also necessary. The United Kingdom has already used this technology with what appears to be a success. Recent studies claim that the losses brought on by Clone cards in the UK have already significantly decreased. Although it is still possible to copy these new chip and PIN cards, doing so is not economically viable given the costs involved and the potential amount that may be taken.