Tags: Marcus | PayPal | credit card | skim

PayPal President: My Credit Card Was Cloned!

By    |   Friday, 14 February 2014 07:05 AM

David Marcus, president of PayPal, announced that he was a recent victim of credit card theft that resulted in a fraudulent spending spree when his credit card information was stolen during a recent trip to the United Kingdom.

The executive tweeted, "they then cloned it and went on a shopping spree," implying thieves "skimmed" the card at the hotel he stayed at.

Security expert Brian Krebs explained on his blog that a skimmer is a device made to be affixed to the opening of an ATM or a point-of-sale card reader that secretly swipes credit and debit card information when customers' cards are run through the machines.

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Marcus noted that a "ton of fraudulent" transactions were incurred despite his card having EMV chip technology, a more secure system currently in use in Europe. The data was still stolen, even with the EMV chip, he charged.

Had the merchant accepted PayPal as a form of payment, the infringement would not have happened, Marcus argued, taking the opportunity to cite the payment-processing company's security benefits.

Financial information (like credit card numbers) is securely stored and encrypted on PayPal's servers and is not shared with merchants when making purchases, USA Today reported.

PayPal is exploring avenues to implement its system in physical stores as recent security breaches in retail locations such as Target and Neiman Marcus have created a need for heightened security on behalf of consumers, according to USA Today.

Marcus also tweeted, "obfuscating card data online, on mobile, and now more and more offline remains one of PayPal's strongest value props."

Robert Siciliano, an identity-theft expert with BestIDTheftCompanys.com, told MarketWatch, "People check their Facebook 10 times a day so why not check your bank cards daily just once?"

"Credit card fraud can be a sign that other types of fraud (are) happening as well," Rod Griffin, director of public education at Experian, told Bankrate. "If they have been able to get your account number, it's possible they could have gotten other information."

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David Marcus, president of PayPal, announced that he was a recent victim of credit card theft that resulted in a fraudulent spending spree when his credit card information was stolen during a recent trip to the United Kingdom.
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2014-05-14
Friday, 14 February 2014 07:05 AM
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