An image of a bank card on a credit card reader has sparked a new debate about the reliability of magnetic stripe cards and whether they are safe.
It also comes amid a surge in card theft.
Lufthansa is among the airlines that have reported a sharp increase in card fraud in recent months.
LFCs were introduced in the early 2000s as a means of managing cash flow and reducing the risk of the loss of money by customers who were not using them.
But since then the cards have been linked to fraud and counterfeiting.
“The problem with the LFC is that there are different types of cards and you have to trust that they are not stolen,” said Michael L. Kocher, director of global corporate security for credit card giant Visa.
Lufthanese Airlines has been accused of issuing fake LFC cards to passengers.
Last month, the airline was hit with a lawsuit from a woman who claimed she was issued counterfeit LFC Cards, with one card showing a fake address.
The card was in a drawer of the cabin that passengers were able to retrieve without paying for it, the woman said.
A spokeswoman for LufThansa, a subsidiary of German airline Lufchapp, told The Associated Press in a statement: “The card does not show any transaction on it and it was issued without any authorization.
We have never received any complaint from the customer.
We are taking legal action against the card owner to obtain the card back.”
The airline has since denied any wrongdoing, saying the cards were never in circulation.
More than half of all Lufs are issued by Swiss banks, and some have been issued to passengers with the intention of fraudulently acquiring them.
However, there is no evidence that they have been stolen or fraudulent.
According to the European Banking Authority, about 20 percent of all cards are counterfeit and can be stolen.
The new cards also appear to have an unusually high failure rate.
According to data collected by Europol, of the 1.4 million Luf card issuers across the EU, more than one in five are reported to have a high failure percentage.
The agency also noted that, as of the end of March, 1.6 million of those cardholders had reported card fraud.
Card issuers have been under pressure to improve their card security and track fraud.
The US Federal Trade Commission is looking into the use of magnetic strips in payment cards and the European Union is set to investigate card issuances.