Q:

How do people use credit card generators to commit crimes?

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Quick Answer

Criminals use credit card generators to produce number sequences that appear similar to valid credit card numbers and then utilize them to purchase goods online, explains CPAFinder.com. Before deploying these numbers, criminals first verify their acceptability by testing them at websites that require users to provide credit card numbers as a precondition for entrance. To avoid this type of fraud, merchants should, among other things, cross-reference the contact details that purchasers provide against their card numbers to verify their authenticity.

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Full Answer

Credit card numbers consist of a prefix identifying the specific type of card, such as American Express, MasterCard or Visa, followed by the number sequences of the issuing financial institutions, reports CPAFinder.com. Credit card generators use different types of specialized software to create numbers matching this pattern.

Ironically, the process of generating the necessary number sequences involves the use of an algorithm that developers originally designed to keep store clerks from inputting erroneous numbers into credit card machines, says CPAFinder.com.

Another form of credit card fraud involves the criminal breach of secure computer systems, states Justia. After breaking into such systems, hackers steal credit card data and other personal information, which they may then sell to the third-parties who use it to create fraudulent credit cards.

However, credit card fraud does not necessarily involve the violation of criminal statutes, notes Justia. Examples of such fraud include merchant contracts with fine print allowing repeat billing while making the process of opting out of the rebilling extremely difficult.

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