ID Theft: How Can Someone In Moscow Take Your Money?

How does someone in Moscow step up to a cash machine and withdraw money from an account holder half a world away? Even when the debit card is still in the victim's wallet?

It's often called "white card" fraud. Criminals somehow get their hands on the electronic information stored on a legitimate card's magnetic stripe. Generally, itís stolen from a retailer or payment processorís database, as happened when thieves last year broke into computers at CardSystems Solutions Inc. Luckily for the criminals, CardSystems didn't store just account numbers -- it even stored customer's secret codes that were never meant to be copied on magnetic stripes. Stolen "mag stripe" data is the holy grail for card thieves.

Then they take the stolen data and write it onto a new, blank card -- a card that's often plain white -- and they're off to the bank. How can someone in Moscow take your money? - The Red Tape Chronicles -

Linked by shanmuga Sunday, 19th March 2006 10:05PM