Let's talk about the most widely spread ways of credit card fraud. As it turned out, even the simple cash withdrawal may result in a trouble. According to research, today there are about 30 kinds of illegal operations with credit cards through the Internet. The most common are: payment with fake cards, creation of fake online shops, electronic theft, and fake payment in gambling establishments.
There are at least seven tricks that fraudsters use to leave you with empty pocket.
Keyboard Nozzles. Very often fraudsters use devices, installed on ATM to get the data about the card. These may be special nozzles on keyboard that are identical to the original buttons, which memorize all the pressings, including PIN code. Advise: carefully observe the keyboard of an ATM before you withdraw your cash.
Lebanese Loops. The second method is often called Lebanese loops. A plastic envelope of a card size is put into a chink of an ATM. A cardholder is trying to withdraw his money, but an ATM can't read the data from the magnetic tape. Besides he can't get his card back because of the shape of an envelope. Then the fraudster comes and says that yesterday the same happened to him. To get the card back you simply need to dial PIN code and to press Cancel button twice. The cardholder tries it and, of course, it doesn't work. He decides that the card is left inside the ATM, and leaves to contact the bank. The fraudster easily gets the card with the envelope out. He already knows the pin code (the cardholder dialed it himself). And he only needs to withdraw money from the account. Be aware of that when you apply for credit card online.
Technical Method. Technically hard, but possible to intercept the data that ATMs send to the bank. To do that the fraudsters need to connect to an appropriate cable and to read the data. Taking into account that technical development is in progress, this method will become more and more popular.
Video Observation. To get your PIN code, some fraudsters leave a miniature video-camera not far from an ATM. And you are not insured from this no matter good or bad credit you have. When entering PIN code cover the keyboard with a free hand.
Fake ATM. Expensive, but the most reliable way is when the fraudsters place their own ATM in a public area. It actually, for some reason, doesn't work and, obviously, doesn't give any money. But instead it successfully reads the data from the cards. And then you find out that yesterday you drew out all the money from your account but don't remember it.
Data Stealing. Fraudsters in UAE install special devices into slots for cards, which memorize all the data about the card. Then they only need to spy upon the PIN code. And then your best credit card will only be a meaningless piece of plastic.
Bank Fraudsters. You can't fight with it. You can only be aware of it. Sometimes it happens that people, who have access to your credit cards (bank staff), go into a huddle with fraudsters.
Not only cardholders suffer from fraud. Large enterprises, merchants and banks suffer too. And their losses account for hundreds thousand dollars. And sometimes even millions.
Law machinery specialists from all over the world believe that crime, committed with the use of plastic means of payment can be related to one of the most dangerous economic delinquencies.