The new cards are intercepted in the mail, the chips get switched out, and the bank accounts are drained before anyone realizes there's a problem.
Whenever we are sent a new debit or credit card in the mail, it is always accompanied by guidance on how to keep it safe from potential thieves. But what if that brand new card has already been compromised? That's exactly what is happening to large corporations in the US according to the Secret Service.
As KrebsonSecurity reports, the US The new type of mass debit card fraud. The criminals are targeting large corporations who have new debit cards sent to them. Those packages are intercepted, the chips are removed from the new cards using the heat source to melt the glue, and old chips attached to replace them.
When the package is mailed on to its intended destination, the cards look fine and so they get activated. The clever bit is here, the new cards, make it through the activation process, but can not be used. However, because the card is now active, the stolen chips from the cards do the work and allow the criminals to drain those accounts before anyone realizes something is wrong.
taking the time to remove and replace the chips is actually a much more reliable way of stealing the card. It is done for them.
The easiest solution to this fraud problem. The financial institutions sending out the cards. Of course, that would cost more money, but probably much less than the cost of dealing with mass debit card fraud.