Credit Card Skimming Can Happen To Anyone – Some Tips On What To Look For And How To Protect Yourself

Skimming is not only one of the most common identity theft schemes, but one of the hardest to prevent as well. Though the equipment involved with credit card skimming may be high tech, its user is not required to be of a very high level of sophistication, thus making it a favorable method of one of humanities oldest sins – stealing. Though this scam requires a certain degree of gullibility on the part of the victim, having your identity stolen can happen even to the savviest card user. “Knowledge is power” – we’ve all heard this saying before, and that’s why I’m going to help you understand how the skimming process works and what steps you can take to help your identity stay where it belongs.

Introduction to Skimming

Skimming is a method of stealing your credit card information by simple means, such as photocopying receipts or by more sophisticated means, such as equipping an ATM with a skimming device. In most cases, your credit card will be skimmed by a corrupt employee while processing your transaction. The employee may take your card behind the counter and swipe it through a handheld skimmer before processing your account. The information contained in the magnetic strip is then transmitted and saved electronically, which allows the user to steal hundreds of credit cards’ information at once. The employee must also copy down the credit card security code from the back of the card as well. In other cases, the skimming device will actually be built-in to an ATM or gas pump that has been tampered with. These devices can be installed over the card slot without hindering the functionality of the machine, thus leaving you unaware that your information has been stolen. Usually for these schemes a small camera is used in order to record your PIN number or the CVV code on the back of your card.

Preventing the “Skim”

While skimming is notoriously difficult to detect, there are a few measures you can take to protect yourself:

• Never let your card out of your sight. At restaurants, pay at the register whenever possible, rather than giving your card to your server. If a retail cashier says they need to run your card through another machine, stay close and make sure they don’t run it through any unauthorized devices.
• Only use secure ATMs. Use ATMs that are located indoors, especially banks. ATMs that are located on the street in sparsely trafficked areas and ATMs that are not monitored by cameras are much more prone to compromise.
• Be wary of suspicious machines. While most skimming devices are nearly undetectable, some of the poorer skimmers will look suspicious, even conspicuous at times, when installed improperly. If there are multiple ATMs in the area, give a quick comparison to see if all the slots are identical. Look for protrusions from the slots, variations in the coloring on the machine and deviations in style in signage. Beware of makeshift signs that instruct you to “swipe here first” or “use only this machine,” especially when the other ATMs appear functional.
• Check the area for unauthorized cameras. Some cameras can be as small as a pinhole and can be affixed to brochure holders or right along the card slot. Most banks will monitor their machines with cameras, but legitimate cameras will not have a view of the keypad.
• Do not accept help from strangers. If you are having difficulty using a machine, do not allow someone else to direct you to another ATM or handle your card. They may swipe your card surreptitiously through a handheld device or bring you to a compromised machine.
• Carefully monitor your credit card and statements for unfamiliar transactions. The smarter credit card thieves often use stolen card information intermittently and for small amounts to avoid detection.

What if your personal information is already in the wrong hands?

Once your identity or credit card information has been stolen, there is almost nothing you can do to contain the information. Instead, it’s best to take immediate action to control the damage. Immediately do all of the following as soon as you discover that you are a victim of credit card fraud:

• File a police report. In order to dispute fraudulent charges, you will need to file both a police report and an identity theft report (see below). Be as detailed as possible when filing your report and write down your police report number.
• Get an Identity Theft Report. Obtain this when you file your police report. Not all police departments handle this the same way. In order to ensure you get what you need, use the FTC’s Law Enforcement Cover Letter.
• Send your Identity Theft Report to all credit card companies and credit reporting agencies. This includes the issuer of your card, Experian, TransUnion and Equifax. Include a copy of your police report, your Identity Theft Report, your supporting documentation, and the FTC’s Credit Reporting Company Cover Letter.

Most importantly: always act quickly. Creditors usually have a 24-hour hotline on the back of the card or on their website. For more information, see the FTC’s site on Identity Theft. If you have more input for this posting, leave a comment – when it comes to the safety of our personal information, we can never know enough.

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