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Secret Service Warns of Chip Card Scheme

Brian Krebs reports of a new scheme where new debit cards are intercepted in the mail and the chips on the cards are replaced with chips from old cards. Thieves can then start draining funds from the account as soon as the modified card is activated. The warning comes from the U.S. Secret Service. Krebs on Security reports: The reason the crooks don’t just use the debit cards when intercepting them via the mail is that they need the cards to be activated first, and presumably they lack the privileged information needed to do that. So, they change out the chip and send the card on to the legitimate account holder and then wait for it to be activated. The Secret Service memo doesn’t specify at what point in the mail process the crooks are intercepting the cards. It could well involve U.S. Postal Service employees (or another delivery service), or perhaps the thieves are somehow gaining access to company mailboxes directly. Either way, this alert shows the extent to which some thieves will go to target high-value customers.

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