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ToggleNewspapers 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.
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.
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.
You can’t avoid using Credit Cards, but you can be more vigilant while using them!
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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.
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.
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 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.
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.
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.
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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Yes, since the PIN is stored in the magnetic strip of your credit card, a card skimmer can access it.
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.
Yes, skimming a chip card by inserting it into a credit card skimmer is possible.
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.
Priyanka Rao is a content strategist for Jupiter.Money, and specializes in writing on topics related to finance, banking, budgeting, salary & wages, and other financial matters. She has a passion for creating engaging content that resonates with audiences across various digital platforms. In her free time, Priyanka enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. With a keen eye for detail and a creative mindset, Priyanka is committed to creating content that connects well with her readers, enhancing their digital experiences.
View all postsPriyanka Sharma is the Head of Credit Cards (Sr. Director Business & Product - Credit Cards) at Jupiter Money, where she leads the growth and development of the company’s credit card portfolio. She is responsible for driving strategic initiatives and enhancing customer experiences through innovative credit products. Priyanka’s leadership is shaping Jupiter’s approach to simplifying personal finance for its customers. Prior to her role at Jupiter Money, Priyanka was an Engagement Manager at McKinsey & Company, where she provided strategic advice to clients across various sectors. Her expertise in business strategy, growth, and operations was built on her strong analytical skills and client-focused problem-solving abilities. Earlier in her career, she worked at ZS, a global business consulting firm, where she contributed to various projects, gaining significant experience in data-driven business decisions. Priyanka holds a Post Graduate Programme in Management with a focus on Finance, Strategy, and Leadership from the Indian School of Business (ISB), where she graduated with distinction, earning a place on the ISB Dean’s List. This prestigious academic achievement underscores her deep understanding of financial strategy and leadership, which she continues to leverage in her fintech leadership role.
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