Credit Card Generator Scams
A Credit Article Contributed by Kris Griebe
What is a Credit Card Generator?
A credit card generator is a program which creates a random credit card number. This number can then be used just like a real credit card number could. The actual process of producing the credit card number is based on an algorithm originally intended to prevent key-punch errors by store clerks. The program simply uses this algorithm to come up with a valid credit card number.
These programs are easy to find on the internet, and many cases, easy to download as well. Almost anyone can find one and try using it. The results are usually not successful, as it is quite easy to get caught in this type of scam.
So Once They Use the Credit Card Number Generator, Then What Do They Do?
In order to test that the number they have generated is valid, most of these scam artists will use it to purchase a membership at an online web site (often an adult oriented web site). If the transaction goes through successfully, then they know that they have a valid credit card number.
From there, it is just a matter of purchasing whatever they want. Thanks to their generator, they have a free license to use any number of credit cards to purchase items through online e-commerce web sites. Once they have ordered their items, and had them shipped, the bill is sent to the true owner of the credit card, not the scam artists actually receiving the goods.
After they have made a few purchases with their credit card number, they will use the generator to come up with another number, once again using it to shop online. The process will then continue on, use the generator for a new number, shop, and around again. This revolving system can allow them to charge thousands of dollars worth of goods in a relatively short amount of time.
But the Credit Card Number Generator Can't Give Them My Personal Information?
Unfortunately, even without your name and address, it is still possible to use these credit card numbers. There are web sites that do not require validation of this sort, especially those that are not based in the United States. It is also made easier if they are ordering and shipping to a country outside the United States, as there are no address verification requirements for those orders. This is how a typical credit card generator scam works.
Shortly after purchasing products, the actual card holders will complain to their company about the charges they did not make. Their credit card company then reverses payment to the online retailer, and that retailer is then stuck with the loss. No matter how much was ordered from them, the responsibility falls back on them, and they are forced to accept their losses and move on.
Luckily, because of this, the individual consumer does not have to worry about being stuck with the bill for these purchases, but many online retailers are wary about such a scam. Because of this, increased security and verification methods are constantly being added to every online retailer. Ultimately, the goal is to stop a credit card generator scam before it even begins.
