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Industry News

Latest skimming scam: Cheesecake Factory workers take $117,000

By Pivotal Payments

25/05/2010 - Recently, a ring of card criminals was busted after they accumulated more than US$117,000 in fraudulent charges since 2008. Making the criminals unique is the fact that they all worked for the Cheesecake Factory - the same place they had been committing the crimes, the Washington Post reports.

The criminals reportedly placed skimming devices into each payment processing system at their location and later used the compromised information that was recorded to make copies of cards and to conduct illegal purchases.

Police were tipped off about the ring after finding an increased number of fraudulent charges on cards that had recently been used at the restaurant. They were also able to narrow the criminals down to three servers, based upon the users that had run the compromised cards in the past.

Skimming has become one of the most popular methods in which card criminals function. To avoid having cards with information stored on their magnetic strip, many countries have switched to chip and PIN technology. These new cards have a microchip inside of them that stores the information and authenticates a user's PIN itself. Canada first switched to this technology in 2007.

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