By John MiliotiThe paper trading card market is booming.
But the biggest card shop chain is not so happy about the influx of new customers.
With the advent of paper trading, card collectors are getting better at buying cards online, but card dealers say that has created an opportunity for card thieves who can make millions on card trades.
For decades, the card industry has been known as a gold rush, with new card releases and new trading card products arriving every week.
But since 2008, card shops have had to adjust to a growing number of customers, many of whom have never bought cards before.
“We have had people coming in and buying all the new cards they want to buy, and the cards are coming in,” said Chuck Smith, the chief operating officer of American Card Services, which operates two of the largest card stores in the country, Walgreens and Amex.
“They are taking it from the dealers and putting it in the store, so there’s a lot of fraud,” Smith said.
Smith said the cards being sold online are much harder to detect, which means criminals can take advantage of the fact that many people are online.
Card dealers say they have not been able to identify the fraudsters who are buying and selling cards on the Internet, but they believe they are involved.
In January, Smith and his team started a fraud detection program that will target cards purchased online and then delivered to their stores.
The card shops and dealers are calling this a “card check,” Smith explained.
“If someone buys a card online, they want the card checked for fraud.
If the card is not checked, it will get sent to a card shop, and they can go out and buy a card for the money they paid.”
The cards that get sent back to the card shop are those that have been sold through a credit card, he said.
That means thieves can get their hands on the cards and sell them for as little as $5, he added.
The problem is that it takes time for the cards to get to a store, and thieves are able to move quickly, he pointed out.
For the past two years, Smith said, he has been looking at ways to make card checks harder to spot.
“I am looking at different ways of doing it,” he said, “that is, making it more difficult for people to make purchases that could lead to fraud.”
The new fraud detection and fraud-checking program is part of the company’s efforts to better detect and stop card fraud, said Smith.
The new system includes a system to track the locations of stores, he noted.
The company is also looking into ways to prevent fraud from occurring in the first place.
In 2015, Smith partnered with the Federal Trade Commission and the Justice Department to help prevent the sale of counterfeit cards online.
The goal of the program was to “identify counterfeit card dealers and shut them down,” according to a news release from the company.
The program was shut down in May 2016.
“With this new fraud check system, we will be more effective in identifying counterfeit cards and preventing fraud,” said the company statement.
The new system is expected to be in place in September or October, Smith told CNNMoney.
“It’s a good system,” Smith added.
“I think it’s going to save us a lot.
We are going to see a lot more of the counterfeiting stopped.”
Smith said he believes the new system will prevent fraud.
The problem with paper trading is that card shops cannot trace who buys and sells a card.
So card dealers must wait to find out whether the buyer or seller has a bank account, which is not easy to do.
“If you have no bank account it’s not easy for them to find you, and if they find you they are going after your account,” Smith noted.
So fraudsters have a way of gaining access to a person’s account without revealing it, Smith added, making the theft much more profitable.
Smith also said that card dealers will be required to post their cards on a website that can be tracked by law enforcement.
This would make it easier for law enforcement to track down those who sell counterfeit cards.
The companies will also start working on ways to track how many cards are bought and sold in a given period.
Smith said they plan to add a new feature in the coming weeks that will give card owners more information about how many they are buying or selling, which could help them avoid fraudulent purchases.