Card Skimming is the act of using a skimmer to illegally collect data from the magnetic stripe of a credit, debit or ATM card. This information, copied onto another blank card’s magnetic stripe, is then used by an identity thief to make purchases or withdraw cash in the name of the actual account holder.
A skimmer in the ATM world usually features two important pieces of hardware: A micro camera positioned within eyesight of the keypad, and a magnetic card reading device that captures your card’s details. To “clone” — duplicate — your card, this is all the info a would-be thief needs.
Skimming works by replacing a card reader like an ATM with a camouflaged counterfeit card reader. The counterfeit reader records all of the data on a credit, debit or ATM card as it passes through the skimmer. In addition to ATMs, other locations where card skimming happens include restaurants, taxis or other businesses where an employee will take the card from the actual account holder in order to run the charge. In these instances, the thief has fitted the card reader with a skimmer, or uses a hand-held skimmer hidden in a pocket.
Today’s skimming, however, employs tricks and hardware that are absurdly complex and yet sneaky enough to elude detection. Unless you know what to look for, of course. Today’s world of skimming is high-tech, and it wants your credit card, debit card and banking info.
Though one might not be able to detect every trick crooks might be using for this act, being armed with a bit of knowledge on the topic could save you major hassle down the road. No matter what you take away from this read, at a minimum you’ll never look at an ATM or POS terminal the same way again. Credit card skimming incidents can be difficult to detect since the credit cards are never lost or stolen. The best way to detect a skimmed credit card is to watch your accounts frequently. Monitor your checking and credit card accounts online daily and immediately report any suspicious activity.
Watch where you shop. Restaurants, bars, and gas stations seem to be the places where credit card incidents happen most frequently. That’s because cardholders are comfortable letting their cards leave their sight in these places. But, if you can’t see your credit card, it could be getting skimmed.
The best advice is to pay some attention when paying for your transaction or taking out cash. Since the reader device is typically only secured with double sided tape, yank on it. You’re not going to break anything. Give the ATM a bit of scrutiny before using it. Does it look like the others nearby? Are there any strange-looking bits that bulge out? Look above the keypad or to the side for pinhole cameras. If anything seems out of place, don’t use it! Find another.
