Have you heard of Credit Card Skimming?  No? Well, neither had I until today and yet I was a victim of it several months ago.  I've often wondered how someone was able to clone my card and go on a shopping spree at the Home Depot.  Today I finally got my questions answered.  

Here's how they did it:

Thanks to those magnetic strips on the back of credit cards, you can pay for gas at the pump or buy groceries at the checkout with one quick swipe through a card reader.

We all love this because it is convenient, but thieves have used this technology to create a new kind of fraud -->> Credit Card Skimming. It's one more danger we must guard all watch out for and another maddening example of how crooks find ways to turn technology against us.

Here's how it works

The bad guys buy magnetic card readers (readily available online) and attach them to legitimate card readers at ATM machines, gas station pumps, movie rental kiosks, or anywhere they think they can get away with it.

The counterfeit card reader captures the credit card information of everyone who uses the machine. (On ATM machines, crooks also attach tiny video cameras to steal PIN numbers.)

They then remove the phony device and use the stored information to buy stuff online or write the data onto new magnetic strips to make counterfeit credit cards or ATM cards.

Counterfeit Credit Card Trends

Portable skimmers (small enough to fit in a palm) can be used by anyone who handles your credit card, such as a waiter. All they have to do is get your card out of your sight for a second. That's enough time to swipe it through the device, and steal your information without you suspecting a thing.

Here's an example of what a credit card skimmer would look like on an ATM machine.  Notice the tiny pinhole camera.  Who would even think to look for that?

Follow these tips to protect yourself from Credit Card Skimming:

• Don't let your credit card out of sight. Watch carefully anyone who handles your card.

• Keep track of receipts and check your credit card statements regularly to make sure you authorized all purchases.

• Report any unauthorized purchases immediately to your credit card companies.

• Don't use a credit card reader if there are any signs of tampering. Don't swipe your card through devices that offer to clean the magnetic strip. Those are scams designed to capture your credit card information.

Have you been a victim of Credit Card Skimming?  If so, how did you resolve the issue?  I'd love to hear your story.  Let's chat in the comment stream below!

photo by: shawnzrossi

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