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Cyber Risks · Krebs on Security

Secret Service Warns of Chip Card Scheme

Summary: The U.S. Secret Service warned financial institutions about a scheme in which criminals intercept new chip-based debit cards mailed to large corporations, heat the glue to remove the chip, and replace it with an old or invalid chip before repackaging the card for delivery. The corporation activates the card, finds it inoperable because of the old chip, and the criminals then use the stolen chip in an old card to drain funds, since they need the card activated first and lack the information to do that themselves.

Bottom line: The target is debit cards issued to large corporations with access to large amounts of funds, and the alert does not specify where in the mail process the interception occurs, leaving open whether postal or delivery employees or direct access to company mailboxes are involved.

Read the original at Krebs on Security ↗

Topics
Fraud & Scams
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