Be Wary of Magnetic Strips
that Don't Work
New Credit Card
Scam can Capture Businesses
Victims of credit card theft have
been scratching their heads trying to figure out how someone has
used their card when they still have it in their wallet. That’s
because the newest credit card scam involves the luck and
patience of perpetrators without the presence of a valid card.
The scammers painstakingly go
through various combinations of 16 digits, testing them at
online stores or calling into verification centers just as
businesses do, until they happen upon 16 numbers that work.
Unfortunately for the victim, this
16 digit combination happens to be their credit card number.
They have no idea their card is being used because they never
lost the card, had any mail stolen or experienced any other type
Once the perpetrators find a successful combination, they shave
off the appropriate numbers from old credit cards and glue them
onto gift cards that resemble credit cards. They often only
alter a portion of the numbers, since the first few are the same
on most cards because it is the bank identification code.
Their final trick is to scratch up
the magnetic strip so that the clerk is forced to enter the
numbers into the keypad to complete the transaction. Given this
new insidious way to steal from unwitting consumers and
businesses, it is more important than ever to follow the prompts
your terminal will give you for address verification and the CVV
or CV\T2 code. If your terminal is not prompting for address
verification call your processor immediately to resolve this
issue. You should also call your processor for a Code 10
authorization if you are ever suspicious of the card or the
client. This is an important safety precaution to protect your
“Businesses and their employees
should always be on the lookout for altered cards and trust
their gut when anything looks suspicious,” warned Michele Coons,
member services manager of RCSC, MVMA’s credit card processing
experts. “Unfortunately, not everyone can be trusted when they
claim their card just went through the wash.”
Direct all your questions about credit card processing to
Michele or Nicholl of RCSC, administrator of MVMA’s credit card
processing program, at (800) 442-3589.
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