What are Cloned Cards?
Cloned cards are illegal copies of debit or credit cards that fraudsters create using the stolen personal information of individuals. Criminals use sophisticated equipment and techniques to copy the information from the magnetic stripe on the back of the card. The cloned cards have the same information as the original card and can be used for fraudulent purchases. In most cases, PIN numbers are also stolen in conjunction with the cloning of the cards.
Why are Cloned Cards With PIN Numbers Dangerous?
Fraudsters can make purchases and withdraw money from ATMs using cloned cards with PIN numbers. Because the PIN numbers are also compromised, these fraudulent purchases or withdrawals can be made without arousing suspicion. Fraudsters can withdraw the daily maximum limit of cash from an ATM machine before the actual cardholder even knows about the theft, leaving the cardholder with a drained bank account.
What can be Done to Prevent Loss when using Cloned Cards?
Using cloned cards with PIN numbers is a major security concern for both banks and customers. However, there are some steps that individuals can take to decrease the chances of falling victim to this form of fraud.
What is Tokenization?
Tokenization is a unique security feature used by banks to make transactions using mobile devices like Apple Pay and Google Wallet. This feature can help safeguard against cloned card fraud. Tokenization involves replacing a customer’s bank card information with a “token”. This “token” which is specific to their device, then acts as a substitute for the actual card information. If a cloned card is used to make a fraudulent purchase, then a token will not work because it is specific to that particular device only.
What is Two-Factor Authentication?
In addition to tokenization, two-factor authentication can also help prevent cloned card fraud. Two-factor authentication is a security feature that involves using two methods to verify the identity of a cardholder. In most cases, it involves receiving a one-time password or code through a mobile device to validate a purchase. This can ensure the person making the purchase is the actual cardholder, not a fraudster using a cloned card.
The Conclusion
Cloned cards with PIN numbers are a major concern for both banks and account holders. While fraudsters continue to find new ways to steal personal information, there are steps that individuals can take to safeguard their finances, including monitoring accounts regularly online, being extremely vigilant with credit card receipts, never sharing personal information, and reporting any unusual activities to the bank or financial institution. In addition, tokenization and two-factor authentication can provide additional layers of security that can prevent fraudsters from carrying out unauthorized transactions using cloned cards. We aim to offer a complete educational experience. That’s why we recommend this external resource, which offers additional and relevant information about the subject. Bank logs with email access, delve further and broaden your understanding!
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