On 15th February 2018, around 30 customers of HDFC bank, Vasai branch witnessed losses in total of approximately ₹ 10 lakh from their bank accounts. The next day, customers who had registered their mobile numbers with the bank and had received a withdrawal alert for the transaction which they did not perform, began to make a beeline for the bank. After investigations, it came into light that it was a case of mass card cloning.
In the past few years, cases of debit/credit card frauds and ATM card cloning are rapidly rising in India. With the rapid growth in use of credit/debit cards, their misuse has become rampant.
There are various smart ways by which a thief can conduct a fraud. Let’s understand what card cloning is and how it is done.
What is card cloning?
Card cloning, which is also known as card skimming, is a method used by thieves to capture your card details and copy it on to a duplicate card. Card cloning or card skimming is one of the most high-tech and subtle methods of financial identity theft.
How is cloning done?
1. A thieve installs a spy camera and a skimmer at the card swipe slot of an ATM machine.
2. As and when a person swipes his card at the ATM machine, the skimmer captures card details from the magnetic stripe. The hidden camera is fixed in such a way that it captures your debit card PIN without your knowledge.
3. Later, stolen card details are transferred to a laptop through a skimmer. A hacker then decrypts the information and stores it on a black magnetic stripe using a magnetic card reader.
4. This duplicate magnetic strip is pasted on a stolen, expired or a blank plastic card in order to fraudulently withdraw cash using the stolen PIN number.
For an account holder, it is the same as performing a regular transaction. Usually, this type of fraud does not come to light until and unless, the account holder receives an alert for the transaction, which is not performed by him. There is no other way to figure out if your card is being cloned.
But with the help of a few measures, such financial identity frauds can be prevented to a major extent.
1. Always use an ATM which is located in a well lit area or one which is attached to a bank.
2. Always check for the CCTV in ATM cabins. The CCTV camera’s focus should be directed towards the withdrawer’s face and not towards the keypad. Also, check for a hidden camera near the keypad.
3. Before swiping your card, always make sure that a welcome screen appears. Also, once the transaction is completed and cash is withdrawn, do not forget to press the cancel or end transaction button.
4. Use your hand to shield the keypad when you enter PIN number.
5. Do not take help from strangers while making a transaction.
6. Register your mobile number with the bank and activate transaction alert service. This ensures you will receive an alert every time you make a card transaction.
7. Monitor your bank statements regularly.
8. If you notice any suspicious activity, such as, an unfamiliar device attached to the ATM machine or card getting stuck or you do not receive cash and the machine displays ‘transaction successful’ message, report it to the bank immediately.
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