Credit Card Skimming
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Newspapers and news channels are full of stories on how credit cards are used to steal money and other credit card thefts. Most people today use credit cards for various uses, such as paying utility or restaurant bills, making online purchases, etc., and it is an easy target for thieves and hackers to steal personal information to use the credit card to steal money and make purchases. Credit card frauds are very common, especially credit card skimming. Fraudsters can steal your credit card information and data by using skimmers. Here is a detailed explanation of credit card skimming and how to avoid it.
What is Skimming of Credit Cards?
Whenever a credit card is used at an ATM or merchant location, it risks getting skimmed. Skimming is obtaining personal data from credit, debit, or ATM cards when used at an ATM or any vendor’s place. Fraudsters can alter operational ATMs or Point-of-Sale machines to attach a ‘skimmer’ device. The card skimmer can collect personal credit card data on the magnetic strip of the card, such as your card number, expiration date of the card, your full name, etc. Once credit card skimmers have obtained all this information, they can easily use it to make purchases, steal money from the account, or even trade the valuable information to a third party in exchange for money.
What Happens When Your Data is Stolen Through Credit Card Skimming?
If a credit card is skimmed, the card skimmer can make any unauthorised transactions or use the data in the following ways:
- Commit Identity Fraud: With the information stolen, credit card skimmers can commit identity fraud, set up a duplicate account in your name, or even apply for loans under your name.
- Make Purchases: The fraudsters can use your skimmed credit card data to make online or offline purchases. Such a theft is called ‘card-not-present’ ‘heft.
- Replicate The Card: Credit card skimmers can sell the card date to other interest third parties, and then the information will be copied onto a new card.
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Common Places Where Credit Card Skimming Takes Place
Any common place like a restaurant, shopping mall, petrol pump, etc., where people are most likely to use POS machines to swipe their credit cards, is the likely target for credit card skimmers to install skimmers and skim credit cards.
- ATMs and Petrol Stations: The most common targets are ATMs and petrol stations; many times, card skimmers are permanently installed in some ATMs. Fraudsters can also install a tiny camera near an ATM to record the card PIN whenever a customer punches in their PIN.
- Retail Outlets and Restaurants: Other easy targets are all the shops and restaurants, as people frequently visit these places and use their credit cards to make payments. It is easy for a gang of thieves to crack one of the shop’s helpers or a waiter in the restaurant to help them with their fraud and steal the card by wiping the card through a credit card skimmer.
- Shoulder Surfing: Shoulder surfing is when a skimmer pretends to be one of the people waiting in the queue and then discreetly observes your actions when you put in your card information and code to later use to make fraud mental transactions.
How to Spot a Credit Card Skimmer?
Credit card skimmers easily blend with ATMS and POS machines, so they are generally difficult to spot and may seem like a part or extension of the machine. But, most of the time, credit card skimmers will stick out of the card insertion panel, and it will look like an additional part is attached to the reader. Such an out-of-place extension or attachment is usually a skimmer, so always check for loose or moving parts to spot a credit card skimmer and stay alert to avoid getting scammed.
What To Do If Your Credit Card Gets Skimmed?
You will only realise your credit card has been skimmed if an unauthorised transaction occurs. If you notice money, even a small amount, getting deducted or you get an alert message for a significant transaction you have not authorised, be alerted that your credit card is skimmed. The good thing is that most banks and credit card lenders now use the latest fraud detection technology and can immediately block your credit card at the first sign of a fraudulent transaction.
You should reach your lender and notify them of any unauthorised purchases from your card so they can block your credit card.
Conclusion
Unfortunately, credit card skimming is easy and common, so the way out for us is to be vigilant and visit only trusted merchants, ATMs, and shops as long as possible. Keep track of your financial statements and credit card bills to know if any transaction is happening without your knowledge, and also set a spending limit on your credit card to be safer.
The solution is not to stop using credit cards, as they make our day-to-day transactions easy. Credit cards also have the advantage of buying now and paying later. So, we need to be more careful and alert to avoid credit card skimming.
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Frequently Asked Questions (FAQs)
How does credit card skimming work?
A card skimmer is installed in targeted ATMs or POS machines, which can read all the data on the card inserted. The skimmer reads the magnetic strip of the card and copies all the information from it, which is then used for fraudulent transactions and purchases.
Can chip cards be skimmed?
Yes, skimming a chip card by inserting it into a credit card skimmer is possible.
Can tap-to-pay be skimmed?
Yes, tap-to-pay can also be skimmed. When you tap the card on the machine to make a transaction, the code and your account information are transmitted to the card skimmer.
