Infographic: Debit card fraud is up
By Juan Rodriguez and Kelly Dilworth
More people are using their debit cards to pay for purchases, according to a new analysis from FICO -- and fraudsters aren't far behind.
The number of debit card fraud cases in which sensitive account details, including debit card numbers and PINs, are "skimmed" from ATMs and retail swipe machines has jumped substantially in recent years, say FICO researchers.
To skim customers' information, fraudsters attach small electronic devices to payment machines, such as ATMs, and use the devices to covertly scan and save the sensitive information stored on a card's magnetic stripe. Fraudsters can then take that information and use it to pay for goods online, where a physical card isn't needed. Or they can use it to create a new counterfeit debit card.
This kind of card-not-present fraud is now one of the leading sources of debit card fraud, says Doug Clare, vice president of product management at FICO. Counterfeit and stolen debit cards are also common, he says, but aren’t nearly as popular with fraudsters.
"As with credit, card-not-present is the most common category of fraud impacting [debit] accounts," says Clare. It's also the costliest. More money has been lost to card-not-present scams than to any other type of debit card fraud, according to FICO research.
Published: August 30, 2012
- Card resolutions abound for 2017 – Paying credit card debt weighs on many Americans' minds ...
- Online fraud surges after EMV chip cards hit the US – Crooks switch to where cards are still vulnerable ...
- Millennials strongly prefer cards – Except for when they’re directly paying another person, millennials are overwhelmingly choosing a debit or credit card ...