Mobile sales increase from time to time. In 2017 alone, they grew by 29, reaching a value of $153 billion. This accounted for one-third of the total online retail revenue. The rise will continue until the market matures. A study found that more than two-thirds of online buyers in the United States have become mobile buyers. Similarly, more than half of adults in the country use their phone to make online payments.
The Risks of Debit Card Stealing behind Mobile Sales
However, the increasing popularity of mobile sales brings its own risks. They include the risks of debit card stealing. Not every individual likes using credit card to make online payment. Given the high interest rates of credit cards, some people prefer to use debit cards. However, thieves are now targeting debit cards. The targets are not only individuals but also businesses.
Mobile buyers tend to be ignorant that they put their bank accounts at risks. The thieves now target corporate debit cards by using various techniques to drain the bank accounts. The fraudsters set elaborate fraud schemes to steal the credit card chips of large companies. Some use mail to steal the debit card chips. They steal the chips from the old cards and send the tampered cards to the company.
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Then, the criminals put the new chips into the old cards. When the companies activate the new card, the chip on the old card (which is one the criminals’ hand) is also activated. This way, the criminals get access to the corporate bank accounts. The fraudsters can drain the bank accounts before the companies notice a problem with their debit cards.
Common Aspects of Vulnerability to Debit Card Stealing
Now the question is, “What makes the corporate debit cards vulnerable to stealing?” The answers lie upon many aspects. Realized or not, some practices related to mobile shopping practices make debit card stealing easier by the fraudsters. Here is some types of vulnerability, which the companies may overlook:
PayPal and Traditional Banking
According to an article posted on the Wall Street Journal, PayPal is bringing its customers to more traditional banking services. It has added basic banking features to the digital wallet. They include FDIC insurance that allows the customers with access to insurance with government-set limits. PayPal also provides debit cards, which the customers can use to withdraw cash on ATMs. Furthermore, the payment company allows the customers to deposit funds to their digital wallet by taking a picture of paper check. These practices put the customers a step closer to the risk of account information abuse.
Elimination of Credit Card Signature
When making a payment using your credit card, you may not need to sign for purchase. Elimination of signature at the register applies for some credit card providers, such as Discover, American Express, Visa, and Mastercard. The reason is the shift from magnetic stripe cards to chip-based cards. The new system has been around since October 2015. In fact, signature is a step to verify your identity. Since signature is not necessary anymore, one-step in the verification process has been eliminated, and the customers are now one-step more vulnerable.
There are actually some other facts that make debit card stealing easier. Do not miss them on the next post.
Source : https://fxdailyreport.com/mobile-sales-grow-risks-debit-card-stealing-also-grow/