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ABA campaign seeks to expose 'card cracking'

The campaign is designed to educate consumers about the fraud and warn them about its consequences — ranging from loss of funds to jail time.

May 19, 2015

In a 2014 ABA survey, bank respondents reported $11.6 million in stolen funds as a result of card cracking, a type of fraud in which consumers respond to an online solicitation (often via social media) for "easy money" and provide debit card data to enable the withdrawal of fake check deposits.

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Targets provide a debit card, PIN and online credentials, giving the criminal direct access to their account — and becoming an accomplice in the process.

The fraudster deposits worthless checks using mobile deposit and immediately withdraws the funds at an ATM.

The accountholder reports a stolen card or compromised credentials and is reimbursed for funds lost. He or she is also given a kickback by the criminal out of the proceeds from the fraud.

Banks have developed an increasingly sophisticated system for detection, the ABA said in a press release. And the ABA itself has developed a campaign warning consumers of the potential consequences of the fraud — ranging from loss of funds to jail time.