Clone cards are created by extracting the data stored in the magnetic strip at the back of the valid card—which contains the cardholder's account information—and making a duplicate card that looks exactly like the valid card. In some cases, the fraudsters might simply steal the legitimate cardholder's physical card and create a clone card with the same information.
The most common method used to create a clone card is called "card skimming." This is a process where an unauthorized device is attached to an ATM or point-of-sale terminal and then used to capture a cardholder's data. The information is then stored in a microchip embedded in the plastic. Once the fraudulent clone card is created, it can be use it to withdraw money from ATM Machines, pay for goods and services online, and even transfer money from accounts to their own bank accounts.
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