Researchers Find Weaknesses in Magstripe Gift Cards

It’s not just credit cards and debit cards
that are at risk of fraud: pre-paid gift cards can also easily be
cloned and stolen by cybercriminals, according to newly published
research [pdf] from U.K-based Corsaire.

The researchers found that the magnetic-stripe
technology used for gift cards and customer loyalty cards — as well as
their easy accessibility — make them attractive targets for the bad
guys. Gift cards can easily be “sniffed” off the shelf in the checkout
line with a scanner and then cloned; the card number on the back of the
card stolen; and the retailers’ Web-based gift card applications
hacked.