Credit Card Dumps: Understanding the Risks and Illegality
A credit card dump refers to an illegal commodity that an unauthorized person can use to obtain the protected data of a credit card account. They can use the information contained in a credit card dump to make unauthorized charges on the card. These criminals usually trade over the Internet in an online global black market.
Definition
A credit card dump refers to the data in the magnetic stripe of a credit card. These details include the card holder's name, card number, expiration date, billing address and phone number. Using these pieces of information, criminals can create a physical copy of an active credit card and charge various unauthorized financial transactions on it. Each card sells for $20 to $100, according to Business Week and the New York Times.
Method
Criminals obtain the information in the credit card dump using a process known as "skimming," according to Business Week. In this process, an unauthorized card reader copies the data contained in the credit card. Hackers may also enter financial databases that contain the required information. Another method for getting the data is to send spam emails to credit card holders in the hopes that the victims will reveal their account information.
Trade Structure
After getting the credit card dump data, criminals usually sell it over the Internet, according to the New York Times. The trade structure includes buyers, sellers, intermediaries and service providers, such as code writers who send spam emails to credit card holders. These individuals use pseudonyms on the online black market. They are based in different parts of the world but usually run their business from computer servers in the former Soviet Union.
Impact
The credit card dump industry presents a "long-term threat to the American financial industry," according to the New York Times. Unauthorized use of credit cards affects about 10 million Americans, resulting in a loss of $5 billion to consumers and $48 billion to businesses every year. Symantec, a maker of computer security software, estimated in 2008 that credit cards and bank accounts in the underground markets amount to a value of $7 billion.
-
Understanding Credit Lines on Credit Cards: Limits & Usage
A credit line is your total spending limit. A new credit card always comes with an initial credit line, which most credit card companies refer to as a credit limit. While a credit line always
-
Credit Card Checksum: Understanding Its Role in Fraud Prevention
The checksum on a credit card can help flag any errors that occur when typing in the number. On a credit card, a checksum is a single digit in the account number that allows a computer, or an
credit card
- Understanding Credit Card CVN: What It Is & Why It's Important
- Understanding Credit Card BINs & IINs: Issuer Identification Explained
- American Express Centurion Card: Benefits, History & Exclusivity
- Credit Card Suspended? Understanding Your Options & How to Reactivate
- Understanding Platinum Credit Cards: Benefits & Evolution
- RushCard: Prepaid Visa Debit Card - Features & Benefits
- Understanding Your Credit Card ID Number: Security & Location
- Credit Card Churning: Rewards, Risks & Credit Score Impact
- Credit Card Churning: Risks, Rewards, and How It Works
-
Understanding the CVC/CVV: Your Credit Card Security CodeWhat Is the CVC on a Credit Card? Providing an extra layer of protection for credit card purchases, the card verification code, or CVC, is a three or four-digit number found on all major bran...
-
Understanding Credit Card Security Codes: A Comprehensive GuideSignature panel codes, more often referred to as security codes, are the three- and four-digit numbers you see printed on credit cards that help provide an extra layer of security when making tra...