Over the past week, at least three US financial institutions reported receiving tens of thousands of dollars in fraudulent credit and debit card transactions coming from Brazil.
All of the transactions were submitted through Visa and MasterCard‘s networks as chip-enabled transactions, even though the banks that issued the cards in question haven’t even yet begun sending customers chip-enabled cards.
According to Brian Krebs, it is far harder for banks to dispute as they usually end up eating the cost of fraud from unauthorised transactions when scammers counterfeit and use stolen credit cards. Even so, a bank may be able to recover some of that loss through dispute mechanisms set up by Visa and MasterCard, as long as the bank can show that the fraud was the result of a breach at a specific merchant (in this case Home Depot).
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