What Is Card Cloning and How to Protect Yourself

You work hard for your money. So, the last thing you want is to have it fall into the wrong hands. Unfortunately, having a credit or debit card doesn’t prevent theft of money.

Fraudsters today are increasingly sophisticated and can get your card details through a process called card cloning, using your money as if it were their own.

To protect yourself, it’s important to understand what credit card cloning is and how it works.

Arming yourself with information is the first step you can take to ensure you don’t fall prey to these fraudulent tactics.

Keep reading below to learn more about card cloning and what you can do to ensure your money is safe.

What Is Card Cloning?

Before we answer the question “what is a clone card?”, let’s first look at what card cloning fraud is. Credit card cloning fraud is a subset of credit card fraud. It also applies to debit cards through debit card fraud.

It occurs when fraudsters clone cards in the UK and elsewhere in the world, by “copying” essential card data onto a duplicate, counterfeit card. This enables them to “lift” such sensitive information and use the funds associated with your card to make unauthorized purchases.

Using your hard-earned money, you end up paying for fraudulent purchases and losing valuable resources to the crime of theft.

It is important to note that while having a stolen card is one aspect of such theft, cloned cards are a different category and they involve a process called card skimming. Let’s take a closer look at this below.

How Does Card Cloning Work?

To determine how card cloning works, we need to break the process up into several parts, depending on what type of card you have.

• Magstripe only cards: If you have a card that only has a magnetic strip on it, which is an older version of the many cards on the market today, there is a chance that fraudsters can steal your sensitive information by “copying” your card details.
• EMV cards: These cards go a step further and apart from having a magnetic strip, they also have an EMV chip fitted onto them. EMV stands for Europay, Mastercard and Visa. This chip is often inserted into a point-of-sale (POS) card reader. Although it provides some levels of encryption and greater security, it is not totally safe from determined fraudsters.
• Contactless cards: Contactless cards work with radio frequency identification technology or RFID technology. Such RFID enabled cards possibly offer the greatest levels of protection from credit card skimmers but they are not totally immune from a fraudster looking to steal money.

In all of these cases, you have a legitimate card that can potentially be cloned. Taking the necessary precautions will ensure that your money doesn’t fall into the wrong hands.

How Was My Card Cloned?

We now cover possible ways in which your card could be cloned. While this is not an exhaustive list, it contains some of the most common ways fraudsters work.

Via social engineering

Fraudsters can hack into your computer and record your keystrokes when you’re making an online payment or perusing your internet banking. They can also do over-the-shoulder tricks to see your card’s PIN, or send you smishing or phishing SMSs or emails through which you reveal your card data to them unknowingly as they pose as your financial institution or bank. This way, they gain easy access to your money, and can use it to make purchases with it or operate your account.

POS card readers

Another way in which fraudsters can clone cards is by working together with an employee at a store you often frequent. This gives them access to the POS terminal where they can clone your physical credit card. This is done by inserting or attaching a skimmer onto the terminal, which “lifts” your card data and creates skimmer copies of it, which they can later use.

At ATMs

There are several ways that ATM card cloning can take place. The first is by installing a very small camera at the physical ATM where they can see the PIN that you type in. Other ways include inserting a skimmer into the machine, especially if it has exposed wires, attaching it to the ATM, enabling them to again lift and copy your card information.

Gas station pumps

Furthermore, there are also scams at self-serving gas station pumps where you pay with your card after filling your car with petrol. These self-standing payment terminals are often unattended, giving fraudsters the chance to attach skimmers and copy the credit card information stored on your card, such as the PAN number, your name and surname, CVV number, expiration date, etc.

Being aware of the different places in which this type of fraud can occur should help you stay more vigilant.

Always check out the POS terminal for any suspicious small or bulky attachments to it and if you suspect anything wrong, do not make the payment and immediately contact your bank.

The same is true when you make withdrawals or transactions at an ATM or even at a gas station, as they may have skimmers installed inside. 

How to Find Out if Your Card Has Really Been Cloned

Suspicious and concerned that you are the subject of a clone card? There are several ways to determine if your card has really been cloned. Consider these situations and immediately contact your credit card issuer if you experience any of these situations:

• Regularly monitor your bank account statements for any strange transactions. Whether it’s a small or large payment to a place you’ve never visited or a transaction you can’t remember, be on the lookout for money coming off your account.
• Additionally, you should electronically and physically check for suspicious merchants. Electronically, you can check your statement and see if the merchant seems legit and a place that you regularly frequent. Physically, be sure to check that the merchant is legitimate and if in doubt, ask them to verify the proof of their legal ability to trade.
• Furthermore, you’ll want to monitor your account for any small charges on it. Sometimes fraudsters take small amounts from your cloned card so that the fraud isn’t easily discovered.
• Another sign to look out for includes checking your statements for payments made from other locations which you haven’t been to or don’t know about.
• If you have less credit available on your account than you were certain you did, if new accounts are opened in your name, or you’re denied new credit despite having the necessary credit scores, you could be the victim of card cloning, too.

It’s always a good idea to sign up for your bank’s service offering to send a text message to you every time you make a transaction so that you can immediately spot if something is wrong and there is any card fraud.

What to Do if Your Card Has Been Cloned

If you regularly use your physical card at retail stores or bank ATMs, it’s essential that you remain vigilant at all times.

If you suspect that your debit or credit card has been cloned, you need to contact your bank or financial institution immediately.

Most banks often use machine learning to create highly detailed and complex customer profiles that contain information such as how often you shop/pay, where you usually go, the average value of your transactions, etc.

Anything that falls outside the scope of such regular payment activity will be flagged.

However, it is your responsibility to report any suspicious activity and behaviour to them to ensure that fraudsters who aim to commit fraud are stopped from causing harm.

Examples of Card Cloning Fraud

If you have one or several payment cards, you need to be vigilant regarding card cloning.

It can take place in many ways, examples of which include: at ATMs, gas pump stations, retailers and shops, through social engineering, an electronic device such as POS terminals and even on the web when making online payments.

Whether you have magnetic stripe cards or you use a contactless card to make payments, be aware that cards can be cloned on a blank card. Despite the myriad of protection measures banks and financial institutions put in place, you need to protect yourself and your digital information from fraudulent charges.

Remember that an original card reader can transmit information to a card skimmer, especially with cards that only have magnetic stripes. However, the encoding protection afforded by EMV or chip cards is also subject to such fraud.

The same is true when making a contactless payment or even making payments online as harmful software can be installed on your computer if you do not protect yourself.

How to Prevent Card Cloning and Protect Yourself

The rise in sophistication methods and new technology that can help fraudsters steal from you is frightening. However, there are many ways you can protect yourself. Here are a few suggestions worth following:

• Never reveal your card information to anyone
• Constantly monitor your bank account statements for any irregular payments, small and suspicious charges, suspicious retailers, payments from locations you haven’t been to, payments at retailers you haven’t visited, etc.
• When making a POS payment, inspect the device and see if it has small or bulky attachments on it.
• Hide your PIN number when you are at an ATM by covering the keypad with one hand.
• Immediately contact your bank if suspicious of card cloning and report the matter to them as soon as possible.

Card Cloning: Conclusion

Card cloning is a serious threat to society. Through it, fraudsters can tap into your money by copying or cloning your card information onto card skimmers which they then transfer onto a blank card.

After this, they create a duplicate card with your details that they can use to make fraudulent purchases. You need to exercise vigilance and caution whenever you use your card.

However, be aware that it’s not only required to this with physical cards but gift cards, online payments and contactless cards, as well. If in doubt or you have concerns, immediately contact your bank or financial institution to report the matter to them.

Being aware and arming yourself with knowledge is your first port of call to protecting yourself and your money.

Frequently Asked Questions

Can you recover money from a cloned card?

The Consumer Credit Act protects you in the event of unauthorised use of your card. However, the amount and conditions for claiming such protection differ and it’s highly advisable that you consult with your bank or financial institution to ensure you get the right advice.

Can cloned cards be traced?

Yes, it is possible to trace cloned cards. Using sophisticated fraud detection technology, banks and financial institutions can see where the card has been used and take further steps to prevent any more money from leaving your account.

What is the safest type of card to use to prevent cloning?

EMV chip cards and contactless cards with RFID technology offer better protection against cloning compared to traditional magnetic stripe cards. However, no card is completely immune. Using virtual cards for online transactions and enabling transaction alerts from your bank can further enhance security.