Carding is a type of credit card theft when prepaid cards or gift cards are bought using a stolen credit card. The thief usually buys these items in various retail stores to get the magnetic strip information. The information is then encoded on a blank card’s magnetic stripe and can be used anywhere that accepts credit or debit cards. The problem has become so widespread that some stores have taken steps to limit the use of gift cards. 1. Carding may not be limited to prepaid cards:-Carding is not limited to getting a prepaid card. It can also involve the purchase of a gift card or a general-use prepaid card. A general-use prepaid card is used like a credit card and can be used at merchants that accept credit or debit cards.2. Stolen information is encoded on a card’s magnetic stripe:-The information needed for the carding scam is encoded on the magnetic stripe of the stolen credit card. The thieves usually purchase various items in retail stores to get the information needed for the scam. This information includes the account number, expiration date and security code. To encode the information on a blank card’s magnetic stripe, the thief uses a card encoder.Card encoders are used to encode information on a blank card’s magnetic stripe
A card encoder is a device or computer program that is used to encode information on a blank card’s magnetic stripe. The information from the stolen credit card is encoded onto the blank card in the form of numbers and magnetic codes.Carding is not limited to prepaid cards and gift cards. It may also involve credits cards and other payment cards. Carding scams occur when someone uses this type of stolen information to make purchases online or offline.
