An internal memo of the US Secret Service shared with financial industry partners states that card theft rings are using Fuze Cards to avoid raising suspicions that may arise when shuffling through multiple counterfeit cards at the register, according to Brian Krebs.
The Fuze card is based on smartcard technology and it allows users to store dozens up to 30 credit/debit cards on a single device. The card relies on a small display screen on the front that cardholders can use to change which stored card is to be used to complete a transaction.
After the user chooses the card data to be used, the card data is made available in the dynamic magnetic stripe on the back of the card or via the embedded smart chip. Fuze cards also can be used at ATMs to withdraw funds.
According to security expert Brain Krebs, fraud rings often will purchase data on thousands of credit and debit cards stolen from hacked POS devices or obtained via physical card skimmers. The data can be encoded onto any card with a magnetic stripe, and then used to buy high-priced items at retail outlets, or to withdrawn funds from ATMs (if the fraudsters also have the cardholder’s PIN).
However, getting caught holding dozens of counterfeit or stolen cards is tough to explain to authorities. Hence, the allure of the Fuze Card, which may appear to the casual observer to be just another credit card in one’s wallet.
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