Stolen credit card fraud: how a stolen card number makes cash for a fraudster

It's tough to be a street criminal these days. In its place has risen organized credit card fraud, one of the fastest growing economic crimes in the nation.

ELI5: How to thieves make money with stolen credit card numbers? : explainlikeimfive

More money is stolen through credit card fraud in the United States than in the rest of the world combined, according to Business Insider. This slide show will provide a window into how it is done.

All information in this slideshow was obtained through police investigations used to prosecute criminals, many of whom are now serving lengthy jail sentences.

Here's how they commit their crimes, step by step.

The organized criminals who actually steal credit card numbers are typically separate entirely from the organized criminals who take the stolen card numbers and turn them into cold, hard cash. How criminals steal your credit card numbers. The vast majority of credit card number thefts now happen without the actual credit card owner even knowing about them, according to May. One notorious national credit card theft ring, dubbed the Felony Lane Gang, doesn't bother with internet data or fake cards.

Busy mothers are occupied with screaming kids and are more likely to leave their purse in their car. One thief, or team of thieves, will make a normal purchase, typically gum, a soft drink or another inexpensive item, along with several hundred dollars in gift cards.

If a problem arises, the rest of the group will leave the store, taking with them any evidence of a larger operation. One of the most labor intensive aspects of credit card fraud is the actual production of fraudulent cards, which can be a specialty skill unto itself, according to Westlake Police Detective Jim Scullin.

The equipment used to encode credit cards can cost thousands of dollars, so fraud syndicates typically produce these cards in bulk, often relying on a third party or gang to produce credible fake cards. Scammers using ATM cards will sometimes simply encode blank white magnetic cards which can then be used along with a stolen PIN number to withdraw cash at an ATM. Westlake Police seized a card encoder that detectives now use to read the magnetic strips of credit cards they believe are stolen.

Registration on or use of this site constitutes acceptance of our User Agreement and Privacy Policy. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Ohio. Community Rules apply to all content you upload or otherwise submit to this site. Back to Main Menu. Close Customize Your Weather Set Your Location: Your weather is set to.

You can change the location at any time. Sign in to Cleveland. You are signed in as. Edit Public Profile Sign Out. The Plain Dealer Sun News Media Insider Rewards. Credit Cards Minimum Payments It's tough to be a street criminal these days. Stolen credit cards, the golden goose that lays everywhere. You may pose a cybersecurity risk unwittingly, CompTIA test suggests. Buying card numbers over the "dark web".

How criminals steal your credit card numbers The vast majority of credit card number thefts now happen without the actual credit card owner even knowing about them, according to May. The tricky part is taking those stolen numbers and actually using them. Photo by Jay LaPrete, Associated Press.

Steal moms' purses instead.

No accomplished credit card scammer operates alone. If the first purchase is made successfully, a second may quickly follow suit. Lynn Ischay, Plain Dealer Publishing Co. About Us About Cleveland. Subscribe The Plain Dealer Sun News eNewsletters.

Subscriber Service Media Insider Rewards View My Profile Report a Delivery Issue Place a Vacation Hold Make a Payment.