This time, it seems that the fraudsters did not have to spend a lot of time on technical solutions as the forged cards are likely to have nothing more that the bank‘s ID number. Notwithstanding, the fraudsters are getting the cards to work.
A US International Airline Employees Federal Credit Union got targeted first with the scam when at the beginning of March the employees noticed strange transactions being done with their IAEFCU Visa cards, although not exceeding $15 at a time.
IAEFCU informed its card insurance company, but the damages were not great enough to persuade the insurer to start an investigation. The company’s payment processor was not that interested in stopping the transactions either because of the small amount of money being siphoned off.
But, credit card safety experts are pointing out that the scheme has been on the go since the 1990’s and the reason for its continuance is the inherent weakness of banks’ online facilities such as ‘credit master’ etc. According to Mike Urban, a senior director of fraud management at FICO, a company providing analysis services: ‘Fraudsters use these applications to create legitimate card numbers for a given BIN, which is easy for them to find online. It may not be an active card number, but it could be a possible or potential card number……they then test the BIN by just running it through. It creates an algorithm.’
However, specialists have confirmed that there is no reason for fear. Without more card information than its number and the bank’s ID, large transactions can never get authorized. But as for the existing problem, the solution for the banks is quite simple:- avoid issuing card numbers in sequential ranges, which makes applications such as credit master and credit wizard less effective.
[Financial Fraud Contributor]
- Credit card security (applyforacreditcard.com)
- Solving the $190 billion Annual Fraud Scam: More on Jumio (blogs.forbes.com)
- British tourists are fraud aware (autonetinsurance.co.uk)
- Credit card fraud at 10-year low (telegraph.co.uk)
- 4 charged in Calgary credit card scheme (cbc.ca)