Credit Card Generator

From LoveToKnow Creditcards

Number hackers try to develop an active credit number for a fake card.

Credit card generators are software programs that use different credit card companies' number generating rules to create numerically valid credit card numbers. Their primary use is in credit card fraud, though there are some legitimate uses, such as software testing.

Number hackers try to develop an active credit number for a fake card.

How They Work

You might already have noticed that certain types of cards have certain patterns. A Visa card number typically starts with a “4,” while a Mastercard number typically starts with a “5.” The credit card generator software uses these and other rules and generates hundreds, even thousands, of numbers that fit these rules. Obviously, though the law of averages, some of the numbers from the credit card generator are actually active credit card numbers.

How the Fraud Happens

The criminals use the numbers the credit card generator creates and either tests them to see which ones are valid or uses a printer to make fake cards and finds a place that takes credit cards but cannot immediately validate them, such as a trade show. (This is why so many merchants use a wireless credit card reader at shows, and process the cards live to avoid this kind of fraud.)

Usually, the criminal tests the credit card generator numbers by making small transactions on a website that offers live processing. He or she enters number after number, discarding the ones that don't work and making tiny purchases of perhaps just a few cents each for the ones that do. In order to avoid being traced, he or she puts in a bogus address for delivery.

Protection Against Credit Card Generator Fraud

Consumer

As a consumer, you can protect yourself from being the victim of credit card generator fraud by:

Checking your credit card statements. This way, you can quickly catch any charges made with a card you own and perhaps have even forgotten about. (It's especially easy to sign up for cards during a special promotion, like a discount off your purchase or a gift for signing up for a card, and then forget about it later, especially if there aren't additional incentives to keep using that card.)
Checking your credit history at least once a quarter and looking for any suspicious activity.

By reporting fraud immediately, you help to protect your credit history.

Merchant

As a merchant, your best protection against criminal credit card generators is using additional verification information with any credit card transaction. Credit card generator numbers are a bit like the lottery; the odds of getting an exact match go down dramatically with every extra number you ask for.

Whether you process transactions personally or have shopping cart software doing all the processing, ask for or have the system automate requests for:

The billing address and the shipping address. Make sure that the shipping address and the billing address match or that the shipping address is authorized. Credit card generator software can't create this.
The credit card's expiration date. Software can create this but it's another thing the fake card has to match.
The credit card's security code. This is the three-digit code on the back of the card.

You can also fight fraud by reporting any kind of suspicious purchasing activity, such as repeated unsuccessful attempts to charge small purchases or a series of small purchases..

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