Clone cards have become an increasingly concerning issue in the world of finance. A clone card is the illicit creation of a second card using the same details on an existing card in a person's name. This can result in someone taking out large loans, making large purchases without the cardholder even being aware it is happening, and potentially devastating their credit.
The method of creating cloned credit card has been around for years, though more recently, it's seen an increase in prevalence. Criminals use specialised software to develop a replica of a cardholder's existing card with a new account number and print a new card with all of the original cardholder's details. For example, if a cardholder who is a victim of cloning initially had a card with a $5000 limit, the cloned card could be issued with a much larger limit like $30,000.
Clone cards aren't just a problem for consumers – businesses are at risk too. Credit, debit, and store cards are all at risk from being cloned, and businesses are now more likely to bear the brunt of fraudulent and clone card transactions, often being made liable for any damages incurred.
The more worrying aspect of clone cards is how easy and inexpensive they are to obtain on the dark web. Described as a “gamechanger for financial crime”, clone credit cards can be bought for as little as $3500 on the dark web with preloaded data such as card numbers, expiration dates, and CVV codes already entered. Some of these cards are even said to be flawless, due to the ability of criminals to alter the size, shape, and contour of the card.
However, measures are being set in place to try and prevent or at least reduce the risk of clone card fraud. Security measures already implemented by banks and other businesses help to verify customers and their financial data. These include chip and pin cards and two-factor authentication at the point of sale. In addition, many banks now provide alerts when high-value purchases are made, alerting the cardholder to any suspicious activity on their account.