Physical Card Fraud Persists Despite AI Scam Boom
Physical credit-card fraud remains a costly problem even as AI-driven scams dominate attention. Criminals mail fake replacement cards or letters with QR codes that lead to counterfeit bank sites and steal account details. U.S. prosecutors also recently charged two Romanian nationals over alleged card-skimming activity.
Physical card schemes have appeared in waves across Portugal, France, and Germany. Criminals send letters claiming an existing card will soon expire, sometimes regardless of actual expiration, and instruct recipients to activate a supposed replacement via QR code or web address. Some fake cards carry real names, lending false credibility.
In the US, two Romanian nationals were recently indicted in Alabama over alleged skimming. Authorities say they targeted SNAP benefits on magnetic-stripe EBT cards. The FBI reports EBT skimming has grown since around 2021, and officials estimate US skimmer losses exceed $1 billion yearly. Many states still issue mag-stripe-only benefit cards, which can be cloned.
These schemes could affect everyday cardholders, bank customers, and benefit recipients who rely on mailed notices or magnetic-stripe cards. A convincing fake letter or cloned EBT card may lead to stolen account access or lost food assistance, creating financial stress and eroding trust in legitimate bank communications. Institutions may face replacement costs, fraud investigations, and pressure to strengthen payment security, though the full scale may remain difficult to measure.