Fraud and cyberattacks to steal credit card information have grown considerably over the past decade. One of the most developed frauds today is the skimming o credit card cloning. According to a report by the consultancy Nilson Report, this method of fraud represents a loss of around 28 million dollars annually for consumers. Next, we will analyze its characteristics and impact.
What is skimming and how does it work?
Skimming is one of the most common scams on the internet. It consists of duplicating or cloning a credit card using a physical device that simulated the terminal of an ATM to clone the user’s credit card. However, this method has now evolved and includes computer programs that are ‘installed’ on websites to duplicate card information.
The devices used to duplicate cards at ATMs can operate for a full day, collecting the data of all users who use the terminal without leaving traces. Fraudsters can then use this information to make purchases and spending online or over the phone at virtual stores like Amazon.
Likewise, digital skimming reproduces this operation in online stores, payment sites and platforms in which the user enters their bank information. The most common form of this modality is through the use of a malicious JavaScript code which, if not detected by the site, can capture a larger amount of data than the physical version of skimming.
Card cloning is part of a larger set of frauds that target credit card information theftas you explain seon’s guide. This guide also includes other forms of fraud, and different safety and prevention methods that can be applied so that businesses can avoid them.
What consequences does skimming have?
Although users are directly affected by skimming, this fraud can be more detrimental to businesses and companies who suffer it Its impact in the short, medium and long term goes beyond the simple breach of data and has multiple harmful effects that represent a million-dollar costas happened to the North American company Filters Fast between 2019 and 2020.
Among the most significant consequences are:
- Damage to the company’s reputation
- loss of customers
- Legal costs (fines and penalties)
- Interruption of operations for an indefinite period
- Reopening costs and public relations
- Loss of market share
According to studies carried out by the pokemon institutedata protection costs represent a 53% the first year, 32% the second and 16% two years later of the security breach. This “carry-over” of economic damage means that attacks can overlap with each other and affect the economic capacity of the company in the long term.
For businesses that work with other businesses (B2B model; business to business), the situation is more complex, since customers can be put at risk and become victims of future attacks. Faced with this, not only can the customer be lost, but they can also arise direct legal action for damages.
For consumers and individual users, there are ways to protect yourself from hacker attacks, but skimming is a complex method that cannot always be avoided. Although on many occasions charges for purchases and expenses made with stolen cards can be voidedit is necessary suspend the cards, purchasing power is lost and time must be spent to carry out the corresponding procedures.
Why has skimming grown so much relative to other forms of fraud?
In Latin America, cybercriminals are increasingly resorting to skimming due to their ability to obtain a large volume of data in a relatively short period of time, and without risk: for example, if a purchase is made with a Visa credit cardsaid purchase is It will only reflect the following month in the card statement.
He skimming digital is very effective, since the Most websites use the JavaScript language to a greater or lesser extent.. The immediacy and effectiveness of the method are factors that explain its popularity among cybercriminals. On the contrary, the ataques de phishing (theft of bank details through emails or fake websites) are often less efficient, as they require more time and effort.
The same goes for the data theft perpetrated against companies: this type of attack requires a prior study of the company, its security systems and the possibility of obtaining valuable data that will later be used to blackmail for millionaire amounts or to sell them on the black marketbut are very risky and require a certain level of sophistication by the perpetrators.
Los malicious programs ( malware) that are downloaded to users’ devices to obtain their card data they are also less efficient for cybercriminals. These must be sent via emails, wireless networks, illegitimate websites or apps directly to users’ devices in a particular way.
For all these reasons, scams skimming they are so popular. They reduce the effort of the perpetrators and can be directed both to countries in the region itself and to countries in Europe or North America. He ransomware (hijacking of sensitive data), for example, can generate higher profits for cybercriminals, but it requires more time and work, so It is not as popular in Latin America as it is in European countries.
During the Latin American Cybersecurity Summit in November 2022, in the Dominican Republic, the director of the Kaspersky Group Research and Analysis of Information Security for Latin America, Fabio Assoliniexplained that, during the last two decades, cybercriminals have developed advanced skimming methods which today are very effective. That is why this fraud is so prominent in Latin America and other regions of the world.
Conclusion
Currently, forms of fraud that target credit cards and banking information represent millions in losses. Credit card skimming or duplication fraud is one of the most prominent due to its efficiency and sophistication, surpassing other forms of fraud such as phishing or ransomware. In addition, its consequences for both businesses and users are severe.
2023-06-02 14:21:49
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