Please do share, if you've any similar experience.....this "innovation" is shocking......
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The card skimming is one of the major fraud in card industry. However with the introduction of chip card this has been eliminated to vast extend. The example shown in the video is for a chip card (see the waitresses is dipping the card in chip terminal and not swapping). But the waitresses actually can't copy the chip data, so she swapped the card to copy the magnetic stripe detail (called Track data). She can still create duplicate copies of this card but only as magstripe card and not as chip, and it is possible to use this card at merchant having no chip terminals. Now here is the catch which many consumers would not know. If you have a chip card and merchant decide to swap the magstripe to make the purchase, the 100% liability for fraudulent transaction shift to merchant, as a cardholder you can safely claim back (chargeback) your amount through your card issuing bank. This is because the unified agreement by all major card brands e.g Visa, MasterCard etc to shift the liability of fraud on merchant if he tries to forcibly use the magstripe for a card which is issued as chip. Now how the merchant would know if a copied card is a chip or magstripe, so it is simple, the chip cards are issued with different code and the moment merchant use the card on a chip terminal as magstripe (swipe), he will receive a warning, which he can decide to ignore and take risk. This is the reason most of the merchant also moving to chip enabled terminals quickly. Fortunately in India, RBI has mandated that all Debit cards must be chip card and must be authorized through PIN, therefore chances of fraud are being minimized. With some basic rule we can avoid such fraud, and always prefer cards from bank who are issuing chip cards. Having worked in the same industry for more than a decade, I can detailed out more information if needed. more
Mar 11
