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What Is Card Cloning?
Card cloning is a type of fraud where criminals copy your debit or credit card details to create a duplicate card for unauthorised transactions. They steal this data using skimmers, malware, or online breaches. Skimmers are small devices placed on ATMs or POS machines to capture card details. Malware infects payment systems to steal data, while online breaches expose stored card information.
Card cloning is different from skimming. Skimming is the process of stealing card data, while card cloning is the act of copying and placing the data on a duplicate card to make fraudulent transactions.
For instance, if your card details are skimmed at an ATM, fraudsters can create a cloned card and use it to withdraw cash or shop online without your knowledge.
Examples of Credit Card Cloning Fraud
1. ATM Skimming:
Fraudsters attach a skimming device to an ATM to copy card details when you insert your card. A hidden camera or fake keypad captures your PIN, allowing them to create a cloned card and withdraw money.
2. Restaurant Scams:
A waiter secretly swipes your card twice—once for the actual bill and once on a skimming device. Your card details are then used to create a duplicate card or sold to criminals.
3. Online Fraud:
Scammers use phishing emails or fake websites to trick you into entering your card details. Once stolen, the details are used for online shopping or sold on the dark web.
Recently, Noida Police arrested six people for a major credit card scam. The fraudsters pretended to be bank officials and called people, promising to increase their credit limits. They sent fake links that looked like real bank websites and asked victims to enter their card details, OTPs, and other personal information. Once they got this data, they used it to make online purchases.
During the raid, police seized mobile phones, gold and silver coins, a laptop, and two vehicles. One of the accused had been involved in similar frauds before. Police have warned the public to never share personal details or click on unknown links.
How Does Card Cloning Work?
Step 1: Stealing Card Data
Fraudsters steal your card details in different ways. They use skimming devices at ATMs or shops to copy data from your card’s magnetic stripe. Sometimes, they use malware to hack systems that store card details. Phishing scams are also common, where scammers trick you into sharing your card information through fake emails or messages.
Step 2: Copying the Data
Once they have your card’s magnetic stripe data, they use a magnetic writer to transfer it onto a blank card, creating a physical clone that functions like the original.
Step 3: Using the Cloned Card
The cloned card is used for ATM withdrawals, in-store or online shopping, or even sold on the dark web for further misuse.
Magnetic stripe cards are more vulnerable to cloning than chip-based cards, as they store static data that can be easily copied. However, fraudsters also engage in digital cloning, where they steal your card details and use them for online transactions without needing a physical clone.
How Does Card Cloning Fraud Work?
Once fraudsters clone a card, they use it in different ways to steal money or make purchases. Here are some common ways fraudsters misuse cloned card details:
- ATM Withdrawals: Criminals use the cloned card to withdraw cash from ATMs, just like a real card.
- Online Shopping: Stolen card details are used to make online purchases without needing the physical card.
- Contactless Payment Fraud: If a cloned card supports tap-and-pay, fraudsters can make small transactions without entering a PIN.
- Selling Card Details: Some fraudsters sell stolen card data on the dark web, whereas others buy and misuse it.
Victims often realise they’ve been scammed when they notice unknown transactions, receive bank alerts for payments they didn’t make, or find money missing from their accounts.
How to Prevent Card Cloning?
1. Use Chip-Based Cards:
Chip cards are safer than magnetic stripe cards because they create a unique code for every transaction, making them harder to clone.
2. Enable SMS/Email Alerts:
Set up alerts for all transactions so you can spot any unauthorised card payments immediately.
3. Avoid Swiping on Unknown Machines:
Be careful when using your card at petrol pumps, restaurants, or unfamiliar shops, as these places can have hidden skimmers.
4. Use Virtual Cards for Online Payments:
Many banks provide virtual cards with temporary details for online shopping, making them useless if stolen.
5. Cover the PIN Pad at ATMs:
Always cover your PIN when entering it at ATMs or payment machines to prevent hidden cameras from capturing it.
Banks and payment companies are improving security by using chip technology, detecting card and ATM frauds with AI, and adding extra verification for online transactions.
Is Card Cloning Still a Threat?
The introduction of EMV chip technology has significantly reduced card cloning incidents, as chip-enabled cards are harder to duplicate than traditional magnetic stripe cards. However, card cloning remains a threat, especially in regions or situations where magnetic stripe transactions are still prevalent.
As physical card cloning becomes more challenging, fraudsters have shifted their focus to online fraud. They exploit card-not-present (CNP) transactions—such as online, phone, or mail orders—where EMV chip authentication isn’t applicable.
In India, more than 29,082 cases of internet, debit, and credit card fraud were reported in the financial year 2024, resulting in losses of ₹1,457 crore. These numbers highlight that card fraud, including cloning, remains a significant threat despite security advancements.
Conclusion
Card cloning remains a serious fraud, but you can prevent it with the right security measures. While EMV chip technology has reduced physical card cloning, online fraud is on the rise. Staying alert can help protect your finances.
Always enable transaction alerts and monitor your bank statements for unauthorised transactions. Avoid using your card on suspicious ATMs or payment terminals to minimise risk.
Frequently Asked Questions (FAQs):
1. Can someone clone my card if I don’t swipe it?
Yes, fraudsters can steal your card details even if you don’t swipe it. They may use phishing scams, data breaches, or malware on unsafe websites to capture your information.
2. How do I know if my card has been cloned?
You may notice unauthorised transactions, unexpected withdrawals, or receive alerts from your bank about suspicious activity. If your card suddenly stops working or gets declined despite having sufficient balance, it could be a sign that your card has been cloned.
3. Are chip-based cards safe from cloning?
EMV chip cards are much harder to clone than magnetic stripe cards because they generate a unique transaction code for each payment. However, scammers can still steal card details for online fraud, where a physical card is not required.
4. What should I do if I suspect my card is cloned?
Immediately report it to your bank, block the card, and request a replacement. Check your bank statements carefully for any unauthorised transactions. It is also advisable to change your online banking passwords and enable transaction alerts for better security.
5. Can debit cards be cloned too, or are they only credit cards?
Yes, both debit and credit cards can be cloned. Debit card cloning fraud is riskier because the stolen money is directly taken from your bank account, whereas credit cards often come with fraud protection, making it easier to dispute unauthorised transactions.
6. How do fraudsters get my card details without stealing my card?
Fraudsters install hidden skimmers on ATMs and payment machines to copy card information. They also create fake websites, send phishing emails, or use malware to steal card details when you enter them online.
7. Is online shopping safe from card cloning?
Online shopping is generally safe if you use trusted websites and secure payment gateways. However, fraudsters can steal your card details through phishing scams, fake checkout pages, or hacked online stores. To protect yourself, shop on trusted websites and enable two-factor authentication for online transactions.
8. Does card cloning affect my credit score?
Card cloning itself does not directly affect your credit score. However, if fraudsters make transactions in your name and the payments go unpaid, your credit score could drop.
9. If my card is cloned, will I get my money back?
Most banks refund stolen money if you report the fraud promptly. However, refund policies vary, and delays in reporting the issue may reduce your chances of getting a full refund.
10. How long does it take for a bank to investigate a card cloning case?
Investigation times vary by bank, and the complexity of the fraud but it typically takes a few days to a few weeks. Reporting fraud immediately can help speed up the resolution process.
