Fake Credit Card Numbers
From LoveToKnow Creditcards
In order to understand how fake credit card numbers are generated, you need to study valid credit card numbers.
How Numbers are Generated
Credit card numbers are generated using a mathematical formula called the Luhn formula. The Luhn formula is used to verify authentic credit cards and distinguish from fake cards with random account numbers. The Luhn formula is sometimes referred to as the "modulus 10" or "mod 10" algorithm. It was invented by Hans Peter Luhn, an IBM scientist, in the early 1950s. The formula is widely used today.
Purpose of Individual Numbers
Most credit card issuers use a 16 number sequence as the credit card number. Visa card start with a prefix of four. MasterCard account numbers start with a prefix of five. Discover cards start with a prefix of 6011. American Express is the exception. This company uses 15 numbers on the front of the card and starts with a prefix of 37.
The sequence of the first six digits is set by the financial institution that issues the card. These numbers can be used to identify the issuing bank and customer billing information. The last digit at the end of a credit card account number is referred to as the check digit. In between the beginning sequence and the check digit is the personalized account number.
Creating a Fake Number
It is virtually impossible to generate a fake credit card number using pencil and paper only. The odds of coming up with a number that will work are less than one in a billion. Generating a number requires a sophisticated algorithm.
Many computer hackers think that by learning and using the Luhn algorithm, they can create fake numbers. A hacker may be able to generate a number that passes the Luhn formula, however it still won't be backed up by a legitimate bank. It will merely be a credit card with a mathematically compliant number, but no substance behind it. Therefore it can not be used to run credit transactions.
Given how difficult it would be to create a workable fake credit card, there is very little opportunity to create one to make illegal purchases. It just can't be done unless a vendor were willing to take the credit card number and hand over or ship goods to the buyer without first validating the card.
Beware of Fake Cards
Consumers should beware of criminals who generate fake cards and then sell them as the real thing. Take care not to fall for sketchy sales pitches for free or low credit ratings. In order to protect yourself from this kind of crime, be sure to work with a reputable financial institution to secure your credit lines. Do not give out personal information, especially your Social Security Number, if you doubt the legitimacy of the institution issuing the credit.
Legitimate Reasons for Fake Credit Card Numbers
There are legitimate reasons for creating fake credit card numbers. Marketing companies use the Luhn Formula to create credible numbers for cards to photograph for direct mail and advertising campaigns that fill your mailbox on a weekly basis enticing you to sign up for a card with them. Toy companies might also use the Luhn method to create toy credit cards for the next generation of consumers.
The most important thing to remember about fake credit card numbers is that credit card fraud is a serious crime. It is illegal and unethical. Law enforcement agencies are constantly looking for frauds and hackers who break the law.
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This page has been accessed 10,753 times. This page was last modified 05:47, 3 November 2008.
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