Skip to Content

AOL Tech

Computers

How Thieves Make Fake Credit Cards

Thieves Utilize Gift Card Magstripe Writer
Tech-savvy thieves have found a new way to commit credit card fraud by altering the data stored in magnetic strips on valid gift and credit cards.

This new "magstripe scam" has likely not become very widespread, as altering a card's magentic strip data is very difficult. Special equipment is required to read and alter the strips and thieves must break a security code on the card itself and then defeat an automated system that watches for suspicious cards and activity.

Recently, a man was arrested at a mall restaurant in Edmonton, Canada. In his possession were thumb drives and computer printouts filled with credit card account data stolen from hundreds of U.S. and Canadian customers. Several prepaid gift cards issued by Visa and MasterCard as well as a device for embedding data on a magstripe were also found.

This follows the exposure of a Miami fraud ring in which six men used counterfeit credit cards to buy Wal-Mart gift cards. The men then used the cards to purchase $1 million in items at Sam's Club, a subsidiary of Wal-Mart.

New contact-less payment systems based on RFID tags are said to be more secure (check our post about e-passports for that one), but the standard magstripe will likely be in use for several more decades.

From USA Today

Related links:

Reader Comments (Page 1 of 3)

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.

Switched Video

Follow Switched on Twitter

Deals of the Day

Latest Reviews from CNET.com

CNET provides the latest tech news, unbiased reviews, videos, podcasts, software, and downloads, making tech products easy to find, understand and use.

Top Product Reviews

  • Home Audio Reviews

    9.0 out of 10

    Definitive Technology BPX
    Works great with Dolby Pro Logic and Dolby Digital. Full Review

    9.0 out of 10

    Denon AVR-4306 (black)
    Incredibly well-featured 7.1-channel receiver; excellent sound quality; three HDMI inputs; converts analog video to HDMI output; upconverts analog video to 720p/1080i HD resolution; iPod and USB MP3 player connectivity; Internet radio and MP3/WMA streaming audio via built-in Ethernet port; XM Satellite Radio compatible; touch-screen remote; multizone, multisource operation; browser-based control via home network; accurate autocalibration routine. Full Review

    8.8 out of 10

    KEF KHT3005 (black)
    The KEF KHT-3005 is one compact, beautifully designed speaker package with solid aluminum satellites that feature unique driver technology to produce incredible clarity. Meanwhile, the equally astounding dual 10-inch, 250-watt powered subwoofer delivers ultradeep bass. Full Review

  • Cell Phone Reviews

    8.7 out of 10

    SignalBoost Mobile Professional Amplifier Kit
    The Mobile Professional Amplifier delivers a powerful signal boost to your cell phone. Also, it offers a compact design and easy setup. Full Review

    8.6 out of 10

    Wi-Ex zBoost YX510-PCS-CEL cell phone signal extender
    The Wi-Ex zBoost YX510-PCS-CEL significantly boosts your cell phone reception and is easy to operate. Also, it uses a wireless connection to your phone. Full Review

    8.3 out of 10

    LG VX6000 (Verizon Wireless)
    Compact and stylish; impressive battery life; solid audio quality; sharp color screen; built-in camera; USB ready; affordable. Full Review

  • Digital Camera Reviews

    9.3 out of 10

    Canon EOS 1D Mark III
    Extremely fast, 10-megapixel continuous shooting; very low noise; highly customizable; well-designed body with weather sealing; 3-inch LCD; abundant optional accessories. Full Review

    9.3 out of 10

    Nikon D3 (body only)
    Full-frame sensor; well designed, pro-level weather-sealed body; very low noise, even at extremely high ISOs; fast. Full Review

    9.0 out of 10

    Canon EOS-1Ds Mark III
    Very low noise, high quality images; 21.1 megapixels; live view shooting; pro-level build-quality and performance. Full Review

  • Desktop Reviews

    8.9 out of 10

    Velocity Micro Edge Z30 (Intel Core i7)
    Best value among midrange gaming PCs; Velocity Micro's consistently high build quality; compact case makes few sacrifices; second graphics card slot previously uncommon at this price. Full Review

    8.5 out of 10

    Apple iMac (24-inch, 2.8GHz)
    A minor specification update results in some significant performance gains; graphics upgrade an option on this 24-inch model; sleek, polished design didn't receive an update, but we won't start clamoring for a new design until the current one is at least 12 months old. Full Review

    8.4 out of 10

    Velocity Raptor Signature Edition Gaming PC
    One of the fastest PCs we've tested; a PCI Express RAID card helps media encoding performance; typically immaculate Velocity Micro assembly; strong, three-year warranty. Full Review

Featured Galleries

Nissan Land Glider
Vintage Keyboards
Retro Computer Logos
Vintage Computer Festival
Motorola CLIQ
iPod touch
iTunes 9
Video iPod Nano
The Beatles: Rock Band

 

Switched Desktop

Get the New Switched Desktop

Latest tech news, Switched mail, and more.

AOL Tech Network

Resources

Autoblog

Daily Finance

Download Squad

Engadget

Joystiq

Urlesque

Fanhouse Main

WalletPop

Gadling