SPD BANK(SH:600000) Di Yi Cai Jing·2025-09-16 11:51Core Viewpoint - The recent incidents of unauthorized transactions on the Shanghai Pudong Development Bank's Mastercard "Priceless World Card" highlight vulnerabilities in cross-border credit card transactions, particularly regarding the use of CVV codes and the risks associated with magnetic stripe cards [1][2][3]. Group 1: Incident Overview - Multiple users of Shanghai Pudong Development Bank's credit cards reported unauthorized transactions abroad, prompting the bank to offer compensation measures such as point compensation, refunds, and fee waivers [1]. - The bank's credit card center has activated risk prevention mechanisms after detecting abnormal transactions not authorized by cardholders [1]. Group 2: Mechanisms of Fraud - Unauthorized transactions often occur due to the lack of password verification in overseas credit card transactions, where only the card number, expiration date, and CVV code are required [1][2]. - The CVV code can be stolen through various means, including data breaches, phishing scams, and physical theft, making it a critical factor in credit card fraud [2]. - Criminals often wait to use stolen information, binding it to NFC-enabled mobile wallets to evade detection by risk control systems [2]. Group 3: Transaction Mechanisms - The incident raises questions about how users with low credit limits experienced significant unauthorized charges, attributed to the offline transaction mechanism used overseas [3]. - In this mechanism, merchants can complete transactions without real-time interaction with the issuing bank, allowing multiple transactions to occur before the bank updates the available balance [3]. - Some banks may temporarily increase credit limits for overseas transactions, which can be exploited by fraudsters, leading to higher unauthorized charges [3]. Group 4: Responsibility and Legal Framework - The responsibility for credit card fraud often lies with the issuing bank, especially if it fails to identify fraudulent transactions or does not act promptly to prevent them [5][6]. - In judicial practice, banks typically bear over 70% of the responsibility in fraud cases, although cross-border transactions complicate the process of seeking redress [5]. - Courts generally view consumers as the weaker party, placing the onus on banks and related institutions to provide compensation, while internal recovery of costs among institutions is handled separately [5][6]. Group 5: Payment Security Measures - The continued use of magnetic stripe cards is a significant factor in the prevalence of fraud, as they are more susceptible to theft compared to EMV chip cards [7]. - The transition to chip cards is essential for enhancing payment security and improving user experience, as magnetic stripe cards remain widely used overseas [7]. - Mastercard has introduced new chip cards compatible with both EMV and UnionPay standards in China, promoting the replacement of magnetic stripe cards to enhance security [7].