The Credit Card Association of the Philippines (CCAP) has given the message “Don’t double-swipe credit cards” to commercial establishments and retailers. The advice is good for customers, too. The practice of “double-swiping” can compromise the data security of credit cardholders.
Alan German, a spokesman for CCAP, said that criminal groups are targeting Point-of-Sale systems, stealing card data and customer PINs.
German told ABS-CBNnews.com, “In many cases, the second swipe results in the credit card’s full data to be retained by the merchant in its own system. Effectively, this unnecessary practice increases the merchants’ vulnerability to potential data compromise… This loose data, so to speak, can then be used to create counterfeit cards, engage in identity theft, and perpetrate fraud.”
The reason “double-swiping” has become common among retailers is because it is often used for customer loyalty programs, record-keeping or other aspects of the retail-operations. The second swipe of a credit card is most often unrelated to authorization or transaction settlements with the retailer.
German believes that if card issuers and merchants understand the risks in double-swiping cards, they will undertake measures to protect their businesses. Understanding the risks would also protect credit cardholders from potential identity theft and other types of fraud.
Identity theft is one of the fastest growing crimes. The Federal Bureau of Investigation (FBI) says the bad news is that we are all vulnerable to identity theft, but there are ways to protect yourself: “First, don’t carry your social security number on any documents in your purse or wallet; change your driver’s license or any other documents to different numbers. Next, lock your mailbox and be sure to stop mail when you’re out of town for more than a few days. Shred your trash with a cross cut shredder. Be careful what you say about yourself in public –especially when you’re on your cell phone. Finally, you can protect your computer with a fire-wall, anti-virus software, or a program that removes spyware.”
Another item that the FBI might list on their website to protect customers and retailers is “Don’t double-swipe your card.”