What is a cloned credit card?

A cloned credit card is a counterfeit card created using the stolen information from the magnetic stripe or chip of a legitimate credit card. Criminals use devices like skimmers to capture this information and then transfer it onto a blank or fake card to make fraudulent purchases.

How to obtain credit card information for cloning?

Credit card information can be obtained in several ways:

• Skimming devices attached to ATMs, gas stations, or point-of-sale systems.
• Data breaches at retailers or websites.
• Phishing attacks that trick victims into giving up credit card details.
• Hacking e-commerce websites to steal customer information.
• Using malware on point-of-sale (POS) systems to capture card data.

How Clone Credit Cards Are Used

Once a clone credit card is created, criminals can use it in several ways:

1. In-Person Transactions (Card Present Fraud)

• Retail Purchases: Cloned cards can be used at brick-and-mortar stores, especially those with outdated POS systems that still rely on magnetic stripe technology. Fraudsters will swipe the card as if it were legitimate and make high-value purchases, often buying easily resold items like electronics or gift cards.
• ATMs: Cloned cards can be used to withdraw cash from ATMs, especially when paired with a stolen PIN. Criminals may use this method to quickly drain accounts before the fraud is detected.

2. Online Purchases (Card-Not-Present Fraud)

• E-commerce Fraud: With the card details (card number, expiration date, and CVV), criminals can use cloned cards for online shopping. Many websites do not require physical verification, relying only on card information.
• Subscription Services: Fraudsters may use cloned cards to subscribe to online services, book travel, or sign up for digital goods and services that can be monetized or resold.

3. Monetization of Stolen Goods

• Reselling Stolen Items: Items bought with a cloned card are often sold in secondary markets, like online classifieds or black markets. Fraudsters convert the stolen goods into cash, which is much harder to trace than the original purchase.
• Gift Cards: Fraudsters often buy gift cards with cloned credit cards, as they can be resold for cash or used to buy other goods, effectively “laundering” the stolen value.

4. Creating Additional Clones

• Mass Duplication: Fraudsters may create multiple clones of a single card, distributing them among criminal networks to make purchases in different locations before the fraud is detected.

5. Avoiding Detection

• Staggered Usage: Fraudsters often spread out transactions across different geographical locations or online platforms to avoid triggering fraud detection systems that monitor for unusual spending patterns.
• Using Stolen Cards Quickly: Criminals know that cardholders or financial institutions will detect fraud eventually, so they try to make as many transactions as possible in a short period before the card is canceled.

Frequently Asked Questions (FAQ)

Can cloned cards be used for online purchases?

Yes, cloned credit cards can be used for card-not-present (CNP) fraud, especially for online purchases. Criminals don’t need the physical card to make purchases on websites that only require the card number, expiration date, and CVV code.

Are cloned credit cards illegal to use?

Yes, using a cloned credit card is illegal. It is considered credit card fraud and can result in severe criminal penalties, including fines and imprisonment. The manufacturing, selling, or possession of cloned credit cards is also illegal.

What are “white cards”?

“White cards” refer to blank cards used in credit card cloning. These cards have a magnetic stripe but no printed numbers or logos. Criminals write stolen credit card data onto these cards to make purchases, and in some cases, they emboss fake details to make the card appear legitimate.

Can debit cards be cloned as well?

Yes, debit cards can also be cloned, particularly if they have magnetic stripes. ATM skimmers are commonly used to steal debit card information, and fraudsters may also use hidden cameras or PIN-capturing devices to steal the associated PIN code.