EMV Card Issuance Fraud Scheme
April 23, 2018
The United States Secret Service is warning financial institutions of a fraud scheme they are seeing involving issuance of EMV cards.
Steps involved in fraud scheme:
- Criminals intercept mail sent from a financial institution to members that contain payment cards.
- Criminals remove the EMV CHIP from the debit payment card using a heat source that warms the glue.
- Criminals replace the EMV CHIP with an old or invalid EMV CHIP and repackage the payment card for delivery to the intended recipient.
- Criminals place the stolen EMV CHIP into an old payment card.
- The member receives the debit payment card without realizing the EMV CHIP has been replaced.
- The member activates the debit payment card; however, their payment card is inoperable.
- Criminals utilize the payment card with the stolen EMV CHIP for their personal gain once the member activates the card.
If you suspect a member may be part of this fraud scheme please submit a fraud ticket.
Signs of a cards with an old or invalid EMV CHIP:
- Heat damage around the EMV CHIP – notice the presence of burn marks.
- Heat damage on the card – the plastic has bubbled from the heat.
- Small hole in the plastic used to pry the EMV CHIP off the card.