Multiple users' credit cards were hacked and used for unauthorized transactions abroad. Some even had four transactions stolen?

Everyday Business News reporter Song Qinzhang Every Daily Business News editor Liao Dan

Recently, on social media, multiple users have reported that their Shanghai Pudong Development Bank credit cards experienced large unauthorized transactions in countries such as Brazil around September 9, amounting to card fraud (stolen-card charges). Many of these cardholders are not in Brazil, and some have even never been to Brazil. They do not understand why this charge appeared out of nowhere.

A reporter from The Daily Economic News found that on a certain social media platform, the group chat formed by the cardholders who were defrauded has already exceeded 100 members.

In the early hours of September 13, the credit card center of Shanghai Pudong Development Bank announced that it had, at the first time, initiated an emergency response with the Mastercard organization, promptly discovering and blocking the risk.

The bank said, “Due to an external attack”

Cardholder Xiao Pan (a pseudonym) said that the abnormal transaction on his credit card occurred on September 9, but he did not receive a transaction text message that day. He only received the posting notification on September 11.

There were also cardholders who, after receiving the posting notification, contacted the Shanghai Pudong Development Bank customer service. The response they received was, “Report it to the police first, and keep the police report receipt.”

At the same time, the representative said, “In the future, the relevant departments will follow up and contact you. And during the investigation, you do not need to bear the amount of this transaction for the time being; please rest assured. If there are any other circumstances or feedback, we will also contact you in a timely manner.”

In addition, the customer service also stated clearly, “If the subsequent investigation result confirms it is a fraud incident and you have no responsibility, the bank will bear the related fraud losses.”

On the evening of September 15, Shanghai Pudong Development Bank told a reporter from The Daily Economic News, “Due to an external attack, some cardholders of partner banks of Mastercard were affected. Our Pudong Development Bank card center, together with our partners, promptly discovered and blocked the risks and issued an announcement, fully working to safeguard the rights and interests of cardholders, and to prevent customers from bearing losses that they should not have to bear. Our card center has already contacted each affected customer one by one to do communication and explanations.”

Based on transaction information screenshots provided by multiple cardholders, the amount of each of these abnormal transactions is mostly around 4,900 BRL (Brazilian real, the main currency in circulation in Brazil), which converts to roughly 6,400 yuan RMB. It seems intended to avoid 5,000 BRL. Judging by the merchant categories for the spending, some are “used car dealers,” some are “dining places and restaurants,” and some are “taxi services.”

Someone was defrauded 4 times in total

Cardholder Xiao Lei (a pseudonym) said that he was defrauded a total of 4 times, and all of them occurred in Brazil; together they add up to nearly 20,000 BRL.

The reporter learned that the credit cards involved in this large-scale card fraud event are mostly the free-to-issue World cards issued through the cooperation between Shanghai Pudong Development Bank and Mastercard, also known as “Red Shahxuan” credit cards.

It is understood that the Red Shahxuan card comes in two versions: a new version and an old version. The old version mainly serves overseas consumption. In May 2024, the card underwent an iteration to the new version’s dual-application chip card, which can be used both domestically and overseas.

Many cardholders involved said that they hold the old-version Red Shahxuan card.

It is understood that compared with the magnetic stripe cards of the past, chip cards are considered relatively safer in terms of technical principles, because the magnetic stripe information on magnetic stripe cards is easier to copy.

The China Banking Association previously issued a notice reminding that one of the important reasons for stolen-card fraud is that cardholders’ cards are skimmed (side-captured), personal information is leaked, or cards are used improperly. Consumers should enhance their awareness of transaction security, apply for and use cards through official channels, and not casually hand over personal information to others for someone else to process on their behalf. Do not lend or rent out your credit card or debit/ATM card to others under any circumstances, so as to avoid bad outcomes being exploited by criminals. When swiping the card, do not let the card leave your sight; keep track of the number of swipes; and retrieve the card promptly after use. For old cards or cards no longer in use, promptly handle account closure and do not discard them arbitrarily.

In addition, while online payments bring convenience to production and daily life, they also come with certain risks. Criminals may illegally obtain cardholders’ online transaction identity recognition information and transaction verification information, which could enable stolen-card fraud. Consumers should protect the security of personal information such as login passwords for financial accounts, withdrawal passwords, and verification codes, and do not provide such information to third parties. Also, pay attention to identifying the authenticity of online service channels to avoid information being stolen by criminals through “phishing” methods—for example, remain alert to unknown phone calls, text messages, and unknown links; do not download non-official apps; and do not register personal information such as ID numbers, bank cards, passwords, and verification codes on unsafe network interfaces or in unsafe network environments.

(Editor-in-charge: Wang Zhiqiang HF013)

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