Card Protection System Foiled
There have been several new implementations of technology to help protect the consumer at the retail level. In fact retailers have been installing these systems to help stop credit card fraud as well as stealing of merchandise. The trouble is there is a very serious issue with the new systems. This flaw has already been exploited by the thieves and could affect millions of consumers with several thousands of pounds stolen in a credit card fraud scheme.
The problem was discovered by a security specialist. The specialist works for the 3rd Man security company. The problem was found during the daily monitoring of card transactions. The system, called the AVS or address verification system that is used by credit card companies and banks has been compromised. The system is set up to make sure the card actually belongs to the person giving the card information to the bank or credit card company. They check to make sure the billing address is the same that is being provided by the user. The AVS will match house numbers and postal codes for each card that they have issued.
The trouble is the system has been hacked. Cotton Traders and TK Maxx are two places that have recently experienced this stealing of data. The fraudsters were able to get around the security in the computers in order to access the data bases for the personal information such as card numbers, addresses, and other personal info.
Basically what happens is the information from the fraudster is going to match the data in the AVS system because they have that information to give. It saves them from getting caught and the card holders who still have the physical card from becoming aware of the issues.
The best part about this scheme is that the fraudsters get to obtain the goods by fraudulent means and then have the shipping address different from the billing address in order to get the goods delivered where they want them. Of course this is also the worst part of the current problem when looking at it from the public’s view.
The problem is very serious because they are able to get around the systems whole design for safety. The retailer is relying on the genuine information, but with the hackers getting the data it makes it impossible to verify.
The fraudsters are making transactions seem verifiable. However, the companies are not actually able to verify that the address details are genuine. The security code check which is the three digit number has been used by companies increasingly to help protect against fraud. Again though, even this is being compromised. If the card is not registered with the 3D secure or registered by the card holder the fraudster can register the card themselves and use a password of their choice.
The fear now is that if the credit card fraud continues there will be a multimillion pound loss for banks and businesses in the UK as a result of the stolen card information.
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