Credit card devaluation refers to an illegal good that the unauthorized person can use to obtain the protected data of a credit card account. They can use the information in the credit card to make unauthorized charges on the card. These criminals often trade over the Internet in an online global black market.
Credit card conclusion refers to the data in the magnetic range of the credit card. These details include the cardholder’s name, card number, expiration date, billing address, and phone number. Using this information, criminals can create a physical copy of an active credit card and charge various unauthorized financial transactions on it. Each card sells for between $20 and $100, according to Business Week and the New York Times.
Criminals obtain information in credit cards using a process known as “skimming,” according to Business Week. In the process, an unauthorized card reader will copy the data contained in the credit card. Hackers can also enter financial databases that contain the necessary information. Another method to get the data is to send junk emails to credit cardholders in the hope that the victim will disclose their account information.
After obtaining credit card export data, criminals often sell it over the Internet, according to the New York Times. The commercial structure includes buyers, sellers, intermediaries, and service providers, such as code writers who send spam emails to credit cardholders. These individuals use pseudonyms on the online black market. They are based in different parts of the world but often run their business from computer servers in the former Soviet Union.
According to the New York Times, the credit card dumping industry is a “long-term threat to the U.S. financial industry.” The unauthorized use of credit cards affects about 10 million Americans, resulting in $5 billion in losses to consumers and $48 billion for businesses each year. Symantec, a maker of computer security software, estimated in 2008 that credit cards and bank accounts on the underground market amounted to $7 billion.