KUANTAN: Authorities suspect that a credit card skimming device, available through the Internet, is now being made locally.

Pahang OCCI Asst Comm Sulaiman Mahmud said the computerised device could easily be duplicated like illegal gambling video machines.

"There is nothing to stop the syndicate from producing the device locally after getting one through the Internet,'' ACP Sulaiman told The Star after being asked to comment on rising cases of credit card fraud believed to be perpetrated with such a skimming device.

Commonly the size of a cigarette box, the user runs it across a credit card to capture electronic information in the magnetic strip to make duplicate cards.

Credit cardholders are not aware that their cards are duplicated and allow time for the syndicate to commit fraud without being caught.

"We have scores of cases involving this scam and have arrested several people,'' ACP Sulaiman said.

He did not rule out the possibility that some merchants were working with syndicates to cheat credit card companies.

Under Section 236 of the Communications and Multimedia Act 1998, it is an offence to possess such devices and offenders are liable to a RM500,000 fine or a jail term not exceeding five years or both upon conviction.

"All it takes is a second or two, with a mere slide of the card, to capture the information on the magnetic strip,'' one credit card company executive--who declined to be named--said, adding that each skimmer could store details of up to 100 cards.

Syndicate members are said to make use of shop assistants to swipe the card across the device.

The executive also said that foreign credit cardholders were the favourite target of the syndicate.

He advised credit cardholders to be careful and not lose sight of their cards and ensure that they were used only on Electronic Data Capturing terminals.

Two major banks are believed to have suffered losses of RM12mil from the scam.

One banking source said his bank made minimal losses because of a highly secured system that is embedded within the card's magnetic strip.

"Banks are working quietly with the credit card companies and the police to combat the scam.''