Credit card skimming is still a major concern for consumers. How does this kind of credit card theft happen, and how can we do our bit to stop it?
Credit card theft and debit card fraud are ever increasing crimes despite many new measures introduced to reduce the chances of it happening. Credit card skimming is a particularly difficult crime to police as it involves using a card which to all intents and purposes appears electronically to be your own card.
There are a few things that banks and card issuers are doing, and several important steps that you should take to try and reduce the risk of credit card skimming happening to you.
How They Skim
Firstly, an understanding of how skimming is carried out can help us to avoid some of the potential problems. In order to skim a card, the fraudster needs to be able to read the magnetic strip on the back of a card and copy the information, this gives them the majority of what they need other than the PIN associated with the card.
Using that information a duplicate card can be cheaply produced with an exact copy of the magnetic information that can be used in any ATM. Some more serious skimmers will reproduce the card exactly so it can be used in face to face transactions as well, but this is less common.
Ways in which the information on your card can be stolen are many, but most require an electronic card reader of some sort. These might be attached to the outside of an ATM machine, looking to the untrained eye as if they are a part of the machine.
These will read a card as it goes into the actual machine slot, and often include, or are connected to a video camera in order to read the PIN as it is entered.
Banks are now much more regularly checking ATM machines for this type of equipment, but you should always be on the lookout for anything suspicious and out of place when using an ATM, especially in remote locations.
Cover your pin as you enter it to make it impossible to read from any camera footage.
Small portable card readers can be carried under clothes, and a favourite credit card skimming technique is for dishonest staff at restaurants or bars to swipe your card without you knowing on their hidden card reader, and then see you enter your pin in the legitimate machine.
Especially be careful not to let the card out of your sight for a second, and cover your pin as always. Remember waiting staff do not usually need to be vetted, so establishments are not always able to control this sort of crime even if they try.
What You Might Do
Chipped cards are currently being introduced in many countries, with the chip considerably more complicated to read than a magnetic strip, but this will not completely remove the risk of skimmers and credit card theft. It is worth thinking about getting a chipped card however, if the option is available.
Always check for any unusual transactions on your account. Some skimmers will only take small amounts that might not instantly be obvious, but a bit of diligence can reduce this credit card theft risk.
Related posts:
- Guideline To Make Sure That Your Credit Card PIN Is Safe
- Debt Consolidation And Balance Transfer Cards
- Your Guide to 0% Balance Transfer & Purchases Credit Cards
- New Free Aussie Credit Card Balance Transfer eBook
Posted on Sunday, June 27th, 2010 at 1:34 pm
You can leave a response, or trackback from your own site.
