Fraudsters looking to test the validity of stolen credit card details quickly and cheaply are targeting Apple’s flagship music store.
The reported warning from card issuers suggests account holders should be wary of single purchases from iTunes that appear on their bank statements.
That’s because crooks buy a track for as little as 51p to speedily verify that the card details they have are valid without alerting the holder – easy if the victim has lots of outgoings.
Once the track is bought with the card, the fraudster then uses the same details for larger more audacious purchases, only stopping when the holder or issuer grows suspicious.
Traditionally, fraudsters tested the validity of a cardholder’s details by buying a pint of milk, or something equally as inexpensive, as a pre-cursor to large frauds in the victim’s name.
If successful, the crook would then complete the ‘pint of milk fraud’ by submitting the same card, typically at the same cashier, to take advantage of the cashback facility.
This week, The Daily Mail reported that the credit card arm of the John Lewis Partnership, which has 600,000 customers, is warning about what was branded the ‘iTunes fraud.’
Sandra Quinn, a director at APACS, the UK’s payment association, said despite confidence in internet security increasing, users should take simple steps, like updating AV and firewall defences.
“A good way to help keep your card safe from being used fraudulently on the internet is to sign up for Verified by Visa and MasterCard SecureCode,” she advised.
“Simply register a private password with your card company and use it when you shop online at participating retailers.”
Aug 31, 2007
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