Fraud Alert! Know more about Card cloning — and what can prevent it

Card cloning is a fraudulent practice whereby information on a transactional card is illegally duplicated. In other words, it is a process that fraudsters use to copy information on a transaction card without stealing the physical card. 

Afterwards, the information obtained from this card is copied into a new one. Through this, criminals are able to gain access to people’s accounts and make fraudulent purchases.

The common types of card cloning are credit card cloning and debit card cloning, but the former is more frequent. Although any card can be used to carry out mischievous deals, even a gift card.

Skimmers are the ones behind credit card cloning fraud. They are capable of getting the CVV, PIN, and numbers of a card. 

Criminals can also make a fake keypad on POS terminals or ATMs, which enables them to have access or steal PIN information. It is possible to not realise on time that your financial details have been stolen.

Below are the common ways card cloning occurs: 

1. Fuel pump skimming

One of the ways of paying at fuel stations is using a POS (point of sale) terminal. This can be taken advantage of by criminals to clone cards. They can install a skimmer within the internal wiring of the machine. Which means paying with your card at gas stations is not completely safe.

READ ALSO: How to keep your bank account details and debit cards safe

2. POS terminal skimming

Fraudsters make use of POS terminals to commit atrocities. They attach a skimmer device to the POS device. When a customer inputs his or her card into the machine, the skimmer automatically copies every detail of the card. The information they get is used to withdraw money from people’s bank accounts or make fraudulent purchases.

‍3. ATM skimming

Criminals use skimmers at ATMs (Automated Teller Machines) to track customers’ information to access their bank accounts. The skimmer can be placed on the card reader, installed inside the terminal, or in a tiny hidden camera in front of the ATM. A faux keypad can also be installed on top of the original keypad to know customers’ PINs.

How card cloning can be prevented:

1. Secure transaction infrastructure 

Financial institutions can really ensure that all POS and ATMs are well secured, right from where they are purchased and through their installation. The POS operators should be monitored to comply with every rule that guarantees people’s information.

2. Investment in security technologies

Financial institutions should consider improving the standards of EMV chips and RFID technology to make it harder for criminals to clone cards.‍

3. Public education

The public should be sensitised to card cloning. They should be taught how they can protect themselves from criminals and how the whole stealing process works.