Credit card fraud and counterfeiting are escalating because of improvements in home computer technology.

This was the subject of an address given by members of the US Secret Service's New York field office to local law enforcement, merchants and bankers at Police Headquarters yesterday.

Special Agent, Chip Smith, explained that there is a new device which can hold credit card information and then transfer it onto a new card. The new card can then be used in the normal fashion.

This device is similar to the swipe mechanism of any credit card machine or security system but is in a portable form.

"Anyone obtaining possession of someone's credit card can use the device to swipe the card, give it back to the credit card owner, plug the device into his PC, download the information and then load it onto a different card,'' he explained.

"All of the card holder's account information is on the magnetic strip of his card,'' said Mr. Smith saying that the device can hold the information of 30 to 40 cards.

The devices are legitimate and can be purchased for about $50. But criminals alter them by adding a computer chip for memory and batteries for a continued supply of power.

Mr. Smith said that home computer technology has also permitted advancements in counterfeiting and showed The Royal Gazette examples of counterfeit notes produced by home computers as well as with plates.

He said that there is an alarming trend in the US right now with counterfeiting and various kinds of credit card fraud stating that $150,000 of counterfeit money is seized every week in the US.

The object of the agent's talk is to keep Bermuda businesses and Police apprised of these new developments before they proliferate in our community.

The Secret Service visits Bermuda every other year to liaise with local law enforcement particularly those working in the area of commercial crimes.

Mr. Smith and his colleagues arrived in Bermuda on Tuesday and will depart on Saturday.

Card swipe: Secret Service agents Joseph Russo (holding the swipe) and Chip Smith explain how criminals use the device to steal credit card information.