This type of fraud occurs when a fake card is createdMost of this fraud involves a technique called skimming, where your card’s magnetic stripe data is electronically copied by a criminal. Fraudsters skim cards using a device that is fitted to a cash machine or to a PIN pad in shops or stores. This data is then transferred onto a fake magnetic stripe card and used overseas in countries that have not yet rolled out chip and PIN.
by fraudsters using data taken from the magnetic stripe
of a genuine card.
The cost of counterfeit card fraud
Counterfeit card fraud losses in the UK have decreased since 2004 – this is due to the fact that chip and PIN has made it much harder for criminals to use fake cards in cash machines and shops in the UK.
Other factors include:
- Increasing use by card companies of sophisticated fraud prevention software.
- The banking industry working closely with the retail community to raise awareness of the ways in which retailers can protect their chip and PIN
terminals from criminal attack – minimising the opportunities for card details
to be electronically copied.
- The continuing rollout of debit and credit cards with enhanced security
features for example, cards with an updated integrated card verification
- The successful work of the banking industry-sponsored special police unit, the Dedicated Cheque & Plastic Crime Unit. This unit has an ongoing brief to stamp out organised card and cheque fraud across the UK.
- More and more countries have now introduced chip and PIN technology,
which makes it much harder to use fake UK cards overseas.