Criminals are devising new ways to get their hands on card information. Criminals that engage in this type of theft are becoming more commonplace, they've realised that card fraud beats holding up someone at gunpoint. Instead, they're hacking into Internet databases filled with customer card data and copying account details encoded on a card's magnetic stripe.

The massive growth in electronic-commerce sites provides criminals with a world of merchants to patronise for products that are easily resold. According to the US Secret Service, the fastest-growing scam used by criminals–particularly organised groups overseas–is to nab card data by "skimming" them off a genuine card. The magnetic stripe on the card's back is encoded with a cardholder's name, account number, expiration date–and a code unique to each piece of plastic. Without the last number, the card cannot be counterfeited. But thieves are buying magnetic stripe readers–available for about $400 on the Internet–and altering them to record all of the data on a magnetic stripe with a mere swipe of the card.

Law enforcement authorities often see this ploy at restaurants, where a dishonest waiter or waitress will unobtrusively pull the small device out of his or her pocket, swipe the card, and hide it before anyone's the wiser. Some criminals set their sights higher. Recently, a computer hacker obtained thousands of credit card numbers of a CD Web site and published them on the Internet after the company refused to pay a ransom. While it is difficult to keep up with the new tricks on the block experts maintain that some companies in their attempt to get their products on the net, are neglecting security issues.

Of course, thieves still acquire credit card numbers the old-fashioned way, such as stealing mail or rumaging in garbage cans. If someone uses your debit card number, the funds in your checking or savings can be wiped out, the problem is made worse when cheques bounce and debit orders are returned.

Preventing scammers from getting their hands on your card number is a lot tougher than safeguarding the actual card. There is not much you can do except to be cautious about disclosing your card number–never giving it to a caller claiming to be, say, your banker, or to a Web site that appears lax in its security. And try to watch your card whenever it's being swiped. Review your account statements carefully, and notify your bank immediately of any discrepancies. No system is foolproof, your vigilance is probably your best protection.


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