How do cloned cards work

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Cloned cards are counterfeit bank cards created using stolen data from original cards. Fraudsters use this data to write information to blank cards (usually with a magnetic strip) or program chips. However, it is important to understand that card cloning is illegal and is prosecuted by law in all countries. Let's look at how such cards work and what technologies are behind this process.

1. Basic steps to create a cloned card​

a) Obtaining data​

The first step is to steal data from the original card. This can be done in several ways:

• Scamming: Installing hidden devices (skimmers) on ATMs or payment terminals to read data from the magnetic strip.
• Phishing: Deceiving users into giving up their data through fake websites, emails or SMS.
• Database hacking: Attacks on companies that store customer data (shops, restaurants, online platforms).
• Malware: Malicious software that steals data from victims' devices.

b) Writing data to the card​

After receiving the data, the scammers write it onto a blank card:

• Magnetic strip: The most common method, fraudsters use special devices to record stolen data on the magnetic strip of the card.
• Chip: Chips are much more difficult to clone because they contain encrypted information. However, in some cases, fraudsters can emulate the operation of a chip using stolen data.

c) Using a cloned card​

Cloned cards can be used for various purposes:

• Payment for goods and services: Fraudsters use cards for purchases in stores that do not require strict chip verification.
• Cash withdrawals: Magnetic stripe cards sometimes work at ATMs, especially in areas where security is less of a concern.
• Online shopping: If fraudsters have obtained the CVV/CVC code and other data, they can use it to make purchases online.

2. How do cloned cards work?​

a) Magnetic stripe​

The magnetic stripe contains three data tracks:

• Track 1: Includes cardholder name, card number and expiration date.
• Track 2: Contains the card number, expiration date and service information.
• Track 3: Rarely used.

Fraudsters copy data from these tracks and write it to a new card. However, such cards only work in systems that support magnetic stripes (for example, old POS terminals).

b) Chip (EMV)​

EMV chips (Europay, MasterCard, Visa) contain encrypted data that is difficult to copy. However, fraudsters can use the following methods:

• Downgrade Attack: If a terminal supports both chip and magnetic stripe, fraudsters can force it to use a less secure method (such as magnetic stripe).
• Chip Emulation: In rare cases, fraudsters can program cards with fake chips using stolen data.

c) PIN code​

Withdrawing cash from ATMs usually requires a PIN. Fraudsters can obtain it in the following ways:

• Through hidden cameras installed next to the ATM.
• Using overhead keyboards that record the characters you type.
• Through social engineering (for example, fraudulent calls on behalf of the bank).

3. Problems with using cloned cards​

a) Limitations of technology​

• Magnetic stripes are obsolete: In many countries, magnetic stripes are no longer supported because they are easy to copy.
• Chip Security: EMV chips contain encrypted data that is virtually impossible to clone without access to the secret keys.

b) Risk of blocking​

Banks actively monitor suspicious transactions. For example:

• Transactions from another country or city.
• Unusual amounts or frequency of transactions.
• Attempts to withdraw cash from ATMs.

If the system detects anomalies, the card is blocked and the fraudster loses the ability to use it.

c) Legal consequences​

Using cloned cards is a criminal offence. Most countries have laws that provide for severe penalties, including imprisonment and large fines.

4. How to protect yourself from card cloning?​

If you want to protect your data from fraudsters, follow these steps:

a) Be careful when using cards​

• Inspect ATMs for skimming devices before using them.
• Cover the keyboard with your hand when entering your PIN.

b) Use modern technologies​

• Prefer cards with a chip and contactless technology (PayPass, PayWave).
• Enable two-factor authentication for online transactions.

c) Check your accounts regularly​

• Check your account statements for suspicious transactions.
• Report any unauthorized transactions to your bank immediately.

d) Contact the bank​

• If you suspect your data has been compromised, request a replacement card.
• Make sure your bank provides real-time transaction monitoring services.

5. Conclusion​

Cloned cards work by using stolen data from the original cards. However, modern technologies such as EMV chips, ATM security systems, and anti-fraud systems have made life much more difficult for fraudsters. However, card cloning is still possible, especially in regions with outdated security systems.

If you have been a victim of fraud or have noticed suspicious activity, contact your bank and law enforcement immediately. Remember that using cloned cards or participating in their creation is a criminal offense and can lead to serious legal consequences.