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#Business | Credit Card Dump Fraud – What is It and How to Avoid It?

A Credit Card holds your account details and information on the black magnetic strip that runs along horizontally on the back of the card. Credit Card dump is defined as the electronic copy of the information on the magnetic. As shocking as it may seem, thugs clone this copy to create fake Credit Cards, and use them for unauthorised transactions. In some cases, the Credit Card dumps are stolen to organise syndicates of criminals.

The magnetic strip in each Credit Card can be categorised into three strips. Each of these strips comprises some specific information which is as follows:

First Strip 

  • Credit Card Number
  • Card Holder’s Name
  • Credit Card’s Expiration Date

Second Strip

  • Credit Card Number
  • Country Code

Third Strip

  • Additional Information
  • Loyalty Programs
  • Special Benefits

How Do Credit Card Dumps Get Stolen?

When it comes to getting their hands on the electronic copy of the magnetic strip, most criminals make use of Credit Card skimmers, which are usually installed in swiping machines available at petrol pumps, retail outlets, and so on. Hence, when you swipe your card to make a payment, all your confidential information gets copied by the skimming device. Yet another way used by criminals to obtain this information is by hacking or installing spyware on the Credit Card machines of the merchants.

What makes the situation even graver is the fact that Credit Card dumps are sold and purchased at significantly low prices ranging anywhere between Rs. 500 to Rs. 2,000 for one card. Considering the harm that a criminal can inflict on you using the Credit Card, the price they pay for this is rather low.  And it shouldn’t come as a surprise that once they get their hands on your information, they can rob you of hundreds and thousands of rupees before you come to know of the discrepancy! 

How to Know if Your Information has been Compromised?

There is no definite way to know whether or not your information has been skimmed and stolen unless the fraud attempts to use your card to make purchases. The dumps are usually sold through untraceable channels such as dark webs and online forums and are usually paid for via wire transfers or cryptocurrency.

How to Spot Discrepancies?

The best way to do so is to analyse your monthly statements carefully. In case you find any transactions that you didn’t initiate, make sure to get in touch with your Credit Card company, and get them investigated. Here, make sure that you don’t overlook small transactions worth a few rupees only. In many cases, thieves try to make minimum payments and wait to see whether you take notice of them or not. If not, they go ahead to make more substantial payments and attempt to rob you of your precious money.

In case the charges are appropriate, your company will replace your card. Moreover, you won’t be held liable to pay for any such unauthorised transactions, since your card is in your safe possession.

You can also opt for balance notification alerts via text, email, or app notification, as these can help you spot any unauthorised use of your card.

Another way to stay safe from such fraud is by using an EMV hip Credit Card. Here, EMV stands for Europay, MasterCard, and Visa. Such a card always makes use of one of the two most trusted authentication methods, which are –

  • Chip and PIN – With this card, you will need to key in a Personal Identification Number to complete a transaction. Since the number is unique and known only to you, there are little chances of fraudulent payments.
  • Chip and Sign – This method of authentication is mostly used for physical payments, and require your signature. If the merchant finds any discrepancies in the signatures, they may alert the authorities and/or decline the amount, thus keeping you safe.

Moreover, chips cards ensure that your information is encrypted which makes it far less likely for it to be hacked.

To further protect your SBI Credit Card or other cards from any misuse, you should be careful as to where you use your card. In case, you find a swiping machine strange or feel that something is out of place, then it will be your best bet not to use the machine at all.

Thankfully, almost all Credit Card companies have now taken charge of the situation, and do their best to avoid or block any suspicious transactions. Quite often, they decline transactions that don’t match your purchasing behaviour. When they do so, they generally get in touch with you to determine, if it was you who was trying to make the purchase. If yes, they unblock the payment. This may seem to be an inconvenience at specific points, but considering the benefits and the safety it offers, it is worth the nuisance.

Now that you are aware of the pitfalls about the use of a Credit Card, and the ways that it can be avoided, you can go ahead to use your card more efficiently. And if you don’t have a card yet, it is high time that you Apply for Best Credit Card Online and reap its numerous benefits!

Also Read: Avoid Committing These Credit Mistakes

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

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