The AIG has issued a press released on the threat of credit card fraud and how other parties can help reduce what they call the “fast-growing epidemic of credit card fraud”.
In the release, AIG identifies two main culprits for the theft of the credit cards:-
- Hackers who break into customer databases and steal credit card numbers and customer data
- Employees with access to credit card numbers and the details of card owners from retailers such as gas stations, restaurants and particularly hotels
Airline Information’s Managing Partner, Michael Smith, says about hotels: “Front line hotel employees can easily access and steal credit card numbers and your personal details. Couple this with outdated IT and business processes related to franchising and it’s a toxic mix. Hotel chains and their franchises often use different reservations systems, requiring that paper copies of credit cards be used in many hotel properties. This is much less secure than the masked electronic credit card information standard in almost any other industry. The result is that hotels can be traced as the source of nearly one third of all credit card fraud globally, which hits our company’s airline clients particularly hard, since airline tickets are a common item purchased with stolen cards.”
When credit card numbers are hacked or stolen, they are then sold online to be used for online purchases or for making cloned credit cards. Personal data about the cardholders, widely available on the web and Facebook, may also then be used by fraudsters, as credit card criminals are referred to, to assume the identities of the stolen cardholders.
AIG also claims Facebook is used for the selling of credit card data, as well as for sharing information between fraudsters on how to successfully steal card numbers and commit identity theft. Jan-Jaap Kramer, CEO of the Dutch fraud prevention consultancy, FraudGuard, says: “There are numerous pages on Facebook set up by criminal rings to facilitate and share information about credit card fraud. Many of these pages show all credit card details like CVC code, expiry code, the PIN code for online payments and personal data of the cardholder including home address, date of birth, social security numbers and more. We have asked Facebook to block these pages, but it takes no action. The result is greater fraud losses for consumers and merchants, ruined credit records and misery trying to sort out fraudulent transactions.”
The Airline Information “calls on Facebook to stop the practice of facilitating the sharing of fraudulent credit card information via Facebook pages. We encourage consumers and merchants to contact Facebook and their government authorities to have Facebook end this consumer-unfriendly practice”