Card skimming, the practice of using an electronic device, known as
a skimmer, to record account data encoded on the magnetic stripe on
a credit, debit or ATM card, has grown to a $1 billion-plus annual
business, according to published reports.
Once the card
information is skimmed, thieves use other methods, such as cameras,
shoulder surfing (use of a camera or a person to read over
the legitimate users’ shoulder), or copying to record PIN
information (as in the case of restaurants).
Identity thieves
have even gone as far as to set up entirely bogus ATMs in busy
locations to skim cards. The user inserts their card and gets it
back, but without any transaction occurring. The user assumes the
bogus ATM, which has now copied all of the pertinent card
information from the magnetic strip, is broken.
The bogus
ATM machine is programmed to return the card—rather than just
taking it and keeping it—because the latter action would cause the
user to call their bank immediately and the card would be cancelled.
According to Margot Mohsberg, spokeswoman for the American
Bankers Association, the problem of card skimming is on the rise for two
primary reasons—the technology to commit the crimes is becoming cheaper in
price and easier to obtain and all forms of fraud tend to increase when the
economy is down. |
Key Terms To
Understanding Card Skimming Card Skimming:
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Skimming at restaurants and other locations where the
consumer surrenders the card tends to be less frequent because it requires
an insider to run the scam.
The ABA recommends the following steps to
protect against card skimming at ATMs.
-
Look for any attachments to the outside of an
ATM.
-
Use ATMs you are familiar with so that if there are
changes, the difference is easily noticed.
-
If something doesn’t seem right with the ATM, use
another one.
-
Cover the keypad to screen cameras before entering a
PIN.
-
Use a machine that is inside a bank whenever possible.
-
Check your account online to make sure there are no
suspicious charges.
-
Be wary of those trying to help you, especially when
an ATM "eats" your card. They may be trying to steal your card number
and PIN.
-
Contact your bank immediately if your card is lost,
stolen or subject to fraudulent use.
-
Keep a record of card numbers, PINs, expiration dates
and 1-800 numbers in a secure place so the information is available if
you need to contact issuing banks
in cases of theft.
-
Memorize your PIN. Do not use your birth date,
address, phone number or social security number. Never store your PIN
with your card and do not make it available to others.
-
Do not give your PIN to anyone over the phone. Often
thieves steal the cards and then call the victims for their PIN while
claiming to be law enforcement or the issuing bank.
|
DID YOU KNOW...
The Consumer Sentinel Network
(CSN) was started in 1997 to collect fraud and identity theft
complaints. The CSN now has more than 7.2 million complaints,
including those about credit reports, debt collection,
mortgages, and lending, among other subjects. [Source] |
Based in Colorado, Rob Douglas is an identity theft expert and has
been fighting against fraud and cyber crime for more than a decade. He
is the editor of www.IdentityTheft.info and a speaker at identity theft conferences
across the USA.
By Rob Douglas, Writer, www.IdentityTheft.info
Last updated:
August 21, 2009
Webopedia's 'Did You Know... Defend Yourself Against Identity Theft'
Identity theft is a crime whereby criminals
impersonate individuals, usually for financial gain. In today's society,
you often need to reveal personal bits of information about yourself,
such as social security numbers, a signature, name, address, phone
numbers, and even banking and credit card information.
Identity Theft Experts -
www.IdentityTheft.info
Includes identity theft articles, research and videos related to
identity theft protection.
Webopedia's 'Did You Know... 10 Tips for Creating Secure Passwords"
With so many passwords to remember, it can be difficult to remember
them, and people may think it is easier to simply use the same password
on different sites, or to use passwords that are easy to remember such
their date-of-birth or a child's name. Unfortunately, these types of
passwords can easily be hacked.
Webopedia's 'Did You Know...All About Phishing'
It is becoming increasingly common to tune in to
the news or load your favorite news Web site and read about yet another
Internet e-mail scam. An e-mail scam is a fraudulent e-mail that appears
to be from a legitimate Internet address with a justifiable request .
usually to verify your personal information or account details.
Twishing: Beware of the Latest ID Scam
Every time a new communication method becomes
popular, fraudsters look for a new way to commit identity theft. One of
the latest popular scams is "twishing."
Credit card
skimming malware targeting ATMs
Even though it is possible to compromise cash
machines with malware, the “return on investment” is much higher on
standard desktop information stealing malware so if anybody decides to
attack ATMs it must be highly targeted and most probably an insider job.
American Bankers Association
The American Bankers Association has financial and regulatory
information for consumers, bankers and members of the financial services
industry. |
