Fake Card Scams Spread as Mastercard Sets 2029 Mag-Stripe Phaseout
Scammers mail fake replacement cards that redirect victims to fake bank sites. Mastercard will stop issuing mag-stripe cards in 2029.
Scammers are mailing fake replacement credit cards to victims, instructing them to activate the card through a QR code or URL. The letters often claim the recipient's current card is about to expire. Some of the fake cards carry real customer names printed on them.
Scanning the QR code typically redirects victims to a fake banking website that requests their personal details. Similar physical card scams have been reported in Portugal, France, and Germany in recent years, according to Wired.
The scheme arrives as magnetic stripe cards are being phased out. Mastercard said it will stop issuing cards with magnetic stripes in 2029, and its remaining batch will be out of circulation by 2033.
Meanwhile, card skimming remains a costly problem. US Attorney Phillip W. Williams Jr. said skimmer fraud losses in the United States exceed $1 billion each year. The FBI says EBT card skimming has risen in popularity among scammers since about 2021.
Two Romanian nationals were indicted by the US Attorney's Office for the Northern District of Alabama on charges related to alleged credit card skimming. The indictment alleges the pair targeted SNAP food assistance benefits on magnetic stripe-only EBT cards. Dozens of states continue to use mag-stripe only cards for benefits purposes.
Quick answers
How does the fake replacement card scam work?
Victims receive a letter claiming their current card is about to expire, along with a fake card. They are told to activate it via a QR code or URL, which leads to a fake banking site that requests their details.
When will Mastercard stop issuing magnetic stripe cards?
Mastercard said it will stop issuing cards with magnetic stripes in 2029, and its remaining batch will be out of circulation by 2033.
Why are EBT cards targeted by skimmers?
The indictment in Alabama alleges two Romanian nationals targeted SNAP benefits on magnetic stripe-only EBT cards. Dozens of states still use mag-stripe only cards for benefits.